- Ethereum and large caps show strength, hinting at early altseason rotation signs.
- Bitcoin dominance forms bearish patterns, suggesting possible capital flow to alts.
- Market sentiment remains neutral, with altseason index far below confirmation level.
A shift may be brewing in the crypto market as indicators hint toward a potential altcoin season. While Bitcoin continues to lead the charge, analysts are watching closely as patterns of capital rotation emerge.
From increased Ethereum activity to large cap strength and a weakening Bitcoin dominance chart, momentum appears to be gathering. Still, the market remains in a transitional phase, with signals showing promise but also caution.
Ethereum Gathers Steam, Large Caps Show Early Strength
According to Altcoin Daily, the market is currently cycling through its classic altseason roadmap. The first phase saw strong inflows into Bitcoin, sparking a sharp rally. Now, Ethereum is beginning to close the gap, occasionally outperforming Bitcoin in brief spurts.
This shift marks the early overlap into the large cap phase. Coins like Solana (SOL), Chainlink (LINK), and Sui (SUI) are exhibiting breakout signals indicating that capital is beginning to rotate.
Moreover, early signs suggest select altcoins with strong fundamentals are getting noticed. This phase typically comes before full-blown altseason, where even low-cap and meme coins experience surges. However, we’re not there yet.
Altcoin season is coming!! pic.twitter.com/XTCgydXgUW
— Altcoin Daily (@AltcoinDaily) July 6, 2025
Bitcoin Dominance Signals Potential Breakdown
CryptoJobs3 has flagged a concerning pattern on the Bitcoin Dominance (BTC.D) chart. A double top and rising wedge have appeared on the daily timeframe.
These patterns often indicate a reversal. If dominance drops from the 65-66% range toward 62%, altcoins could benefit significantly. Despite this, the weekly structure still favors Bitcoin, suggesting altcoin gains may be limited in the short term.
🔴 #BTC.D (Bitcoin Dominance) – Double Top & Rising Wedge Alert!
— 🧙 Crypto_Jobs🧙♂️ TA & FA 🎯 (@CryptoJobs3) July 7, 2025
Daily chart flashing warning signs:
📉Double top
📉Rising wedge pattern
I'm looking for a dominance dump from the 65-66% zone → toward the following levels: 63%-62% (or even lower!) 📉
What could this mean?… pic.twitter.com/1uGQyUAou6
Market Sentiment Balanced, Altseason Not Yet Confirmed
The Fear and Greed Index sits at 52, showing neutral sentiment. Meanwhile, the Altcoin Season Index stands at just 28, well below the 75 needed to confirm altseason. Still, with the total crypto market cap above $3.3 trillion and a steady recovery underway, the foundation may be forming.
