Crypto traders are spotting familiar patterns across key market indicators—signals that previously marked the beginning of major altcoin seasons in 2017 and 2021. While nothing is guaranteed, the current setup has analysts watching closely.
According to chart analysis shared by trader Merlijn The Trader, two important metrics are lining up again: Bitcoin dominance and the ETH/BTC pair. These indicators have historically shown when capital starts rotating out of Bitcoin and into alternative cryptocurrencies.
Right now, Bitcoin dominance is pushing up against a long-term diagonal resistance level. This metric measures Bitcoin’s share of the total crypto market, and when it struggles to break higher, it often hints at money flowing into altcoins.
At the same time, the ETH/BTC pair is trading near a historical support zone—levels that previously acted as a floor during major cycle bottoms. In both 2017 and 2021, similar conditions marked the start of multi-month rallies across the altcoin market. On the chart referenced by the analyst, these turning points are highlighted with red circles, each representing the beginning of an altcoin surge.
During past altcoin seasons, the pattern was clear: Bitcoin dominance broke down, ETH/BTC bounced from oversold levels, and capital rotated aggressively into alternative assets. These periods were represented as green zones on the chart, showing extended phases where altcoins significantly outperformed Bitcoin.
The current market environment, however, remains cautious. Many cryptocurrencies have faced strong selling pressure lately, and overall liquidity in the market is still tight. Analysts warn that historical setups don’t always guarantee the same outcome, especially during broader risk-off conditions.
Still, technical analysts note that previous market rotations often began when sentiment was weak—similar to what the crypto market is experiencing now. If Bitcoin dominance once again reverses from resistance and ETH/BTC confirms support, it could open the door for a new wave of capital shifting into altcoins.
For now, traders are watching these charts closely. If the indicators continue to align as they have in past cycles, it may signal the early stages of another altcoin season.
Also Read: Ethereum Slides to $2,700 as Market Sell-Off Deepens
