Altcoins are experiencing a significant rally even as Bitcoin dominance holds firm above 64 percent, prompting analysts to predict an even greater surge if Bitcoin’s market share drops further. According to crypto analyst Matthew Hyland, the current altcoin rally is happening without any major dip in Bitcoin’s dominance, which could signal the beginning of a broader shift in investor sentiment.

Altcoins Rally Without Major Bitcoin Pullback

Bitcoin has reached new all-time highs for three consecutive days, peaking at $118,760 on Friday. Despite this, altcoins are surging in parallel. As per TradingView, Bitcoin’s dominance currently stands at 64.46 percent, only slightly lower by 1.53 percent over the past week. This minor decline has coincided with significant gains in several altcoins.

Hyland commented on X, “BTC dominance hasn’t even sneezed and alts are ripping,” suggesting that a sharper decline in dominance could ignite even greater momentum in the altcoin market. He added, “What do you think happens if it drops from 65 to 45.”

Bitcoin Dominance as a Gauge for Altcoin Season
Traditionally, traders use Bitcoin dominance as a metric to determine the onset of altcoin season. A drop in dominance often indicates that altcoins are gaining more traction and investor attention, diverting capital away from Bitcoin. However, the current market behaviour challenges this pattern, with altcoins rising even as Bitcoin maintains its stronghold.

Analysts suggest this could mean fresh capital is entering the crypto market rather than merely shifting between Bitcoin and altcoins. If Bitcoin remains above the critical psychological level of $110,000, analysts believe traders may continue to reinvest profits into alternative cryptocurrencies.

Altcoins Post Explosive Gains Across the Board
Several altcoins have recorded extraordinary gains over the past week. MemeCore (M) leads the pack with a staggering 1,263 percent surge. Mog Coin (MOG) followed with a 75.01 percent increase, while Stellar (XLM) climbed 67.43 percent, according to CoinMarketCap data. Ether (ETH), the second-largest cryptocurrency by market capitalisation, also rose 17.68 percent in the same period.

The ETH/BTC ratio, which measures Ether’s strength relative to Bitcoin, has increased by 8.39 percent, indicating a possible shift in trader focus from Bitcoin to Ethereum and other altcoins. Such trends are often seen as early signs of altcoin season by market watchers.

Analysts Predict Historic Altcoin Bull Run
Michael van de Poppe, founder of MN Trading Capital, expressed optimism about the current momentum. In a post on X, he stated, “I assume that we’re about to witness the final easy and biggest bull ever on Altcoins.” The sentiment is echoed by other market observers who believe the present conditions are ideal for altcoins to thrive.

Santiment, a crypto analytics platform, also confirmed that altcoin season has likely begun. Their recent data supports this view, although they cautioned that the trend depends on Bitcoin maintaining its current strength. “As long as Bitcoin can maintain its position above the crucial psychological support level of around $110k, traders will likely feel comfortable redistributing profits into altcoins,” Santiment noted.

Altcoin Season Index Still Favors Bitcoin
Despite the rally, the Altcoin Season Index from CoinMarketCap still suggests that the market is largely favouring Bitcoin. The index currently shows a reading of 29 out of 100, placing the market firmly in what is considered “Bitcoin Season.”

While this might seem contradictory to the surge in altcoins, it may also point to a transitional phase where the broader market is beginning to shift but has not yet fully committed. If Bitcoin dominance starts to decline more significantly in the coming weeks, a full-fledged altcoin season could be underway.

With Bitcoin continuing to set new records and altcoins gaining momentum independently, the current market conditions are generating widespread anticipation. Many traders are closely watching Bitcoin dominance for signs that could trigger even greater activity across the altcoin space.