Altseason Ignites First Buy Signal Since July

Key Indicators Signal Potential Altcoin Outperformance

The cryptocurrency market is showing strong signs of an impending altseason, with the first altcoin buy signal against Bitcoin appearing on TradingView since July. This development suggests a potential start of major outperformance for altcoins.

Bitcoin dominance has dropped below 57%, a trend that typically drives capital rotation into Ethereum, Solana, and other high-beta altcoins. The total cryptocurrency market capitalization has now exceeded $4 trillion, and the Ethereum (ETH) to Bitcoin (BTC) ratio has turned bullish, confirming a classic altseason setup.

Technical Analysis Points to Altcoin Rally

On December 9, 2025, prominent X analyst @MikyBullCrypto shared a TradingView chart highlighting the first confirmed buy signal for altcoins against Bitcoin since July. This signal, represented by a purple dot at the bottom of a multi-month downtrend, indicates a decisive upward reversal.

After enduring five months where Bitcoin dominance remained above 60% and capital was consistently drained from altcoins, the market sentiment is shifting. The altcoin index has broken its descending trendline and is showing an upward curl on the logarithmic scale, a pattern historically associated with explosive altcoin rallies.

Market Dynamics and Leading Cryptocurrencies

Bitcoin's dominance has already decreased to 57.15%, and the total crypto market capitalization has surpassed the $4 trillion mark for the first time. These conditions are considered textbook precursors for a sustained altseason. Ethereum is currently leading the market's upward movement, trading above $3,100. Momentum is building towards its upcoming Fusaka upgrade, which is anticipated to deliver lower fees and increased throughput.

Meanwhile, Solana, XRP, and artificial intelligence-related tokens such as Render and Virtuals Protocol are experiencing significant gains, with many posting double-digit weekly increases. This is occurring while Bitcoin consolidates below the $95,000 level.

Smaller-cap projects, including mid-cap and micro-cap cryptocurrencies, are attracting even stronger inflows. Many of these assets have seen 20-50% price increases within days as speculative capital rotates out of Bitcoin. The Altcoin Season Index has remained above its critical threshold for several weeks, indicating that over 75% of the top 100 cryptocurrencies are outperforming Bitcoin over a 90-day period.

On-Chain Data and Investor Conviction

Despite potential risks such as regulatory uncertainty and year-end profit-taking that could cause pullbacks, the technical and on-chain evidence supporting an altseason is growing. Key indicators include declining exchange balances for major altcoins, rising open interest in perpetual futures contracts, and surging stablecoin inflows into layer-1 ecosystems. These factors collectively suggest increasing investor conviction in the altcoin market.

Strategic Implications for Investors

For investors who have maintained portfolios heavily weighted towards Bitcoin, the current market signals represent the clearest rotation opportunity in the past six months. Historical trends indicate that when altcoins begin to outperform Bitcoin after periods of suppression, the resulting price movements can be rapid and substantial.

December 2025 may well mark the commencement of one of the most significant altcoin cycles observed in recent years. Investors are advised to position their portfolios accordingly to capitalize on these developing market conditions.