Data from key market charts suggests that May 2025 might mark the beginning of a broader altcoin surge, driven by capital rotation and bullish price structures.
The TOTAL2 chart, which tracks the total market capitalization of all cryptocurrencies excluding Bitcoin, has recently broken out above a long-standing downtrend line that’s been in place since January 2025.
Put simply, this kind of technical breakout is usually accompanied by a bullish break of structure (BOS) on the daily timeframe, marked by a sequence of higher lows.
If TOTAL2 can decisively break and hold above the critical $1.25 trillion resistance level, it could confirm a new upward trajectory, one characterized by higher highs and higher lows. This technical movement often indicates a capital rotation out of Bitcoin and into altcoins, a key sign of altseason.
Another strong indicator that many market experts and analysts usually rely on for price analyses comes from the Bitcoin Dominance (BTC.D) chart.
Over the past six days, BTC dominance has dropped by 4%, the steepest decline since November 2024. Typically, a falling BTC.D signifies that money is moving away from Bitcoin and into altcoins, allowing alternative cryptocurrencies like Ethereum (ETH) and Solana (SOL) to claim a larger share of the overall market.
Michael Van Poppe, founder of MN Capital, underscored the bearish shift. He pointed out a strong bearish divergence on the weekly chart, which is also accompanied by declining volume, a double signal that Bitcoin dominance may have peaked.
According to Michael Van Poppe:
“Strong bearish divergence on the weekly timeframe, indicating that the Bitcoin dominance has peaked. The end of the bear market for altcoins.”
Another notable development is the sharp decline in Tether (USDT) dominance, which dropped to 4.59% as of May 13th, the lowest since early February.
Source: TradingView
The USDT.D chart is currently forming a descending triangle, often a bearish pattern. Should it break below support around 3.90%, it would mark the lowest levels since 2021, levels historically associated with past altseasons.
A falling USDT dominance suggests investors are converting stablecoins into riskier assets such as altcoins and Bitcoin, a clear signal of renewed market confidence and risk appetite.
Over the last week, top altcoins have started to outperform Bitcoin in terms of price appreciation. For instance:
This trend further supports the idea that capital is rotating from Bitcoin into altcoins, aligning with the observed decline in BTC dominance and stablecoin market share.
Crypto trader ZERO IKA has also pointed out that numerous altcoins are breaking above their February and March 2025 highs on higher time frames, a bullish structure that hasn’t been seen since previous bull runs.
Source: TradingView
Despite the recent gains, many altcoins are still trading 70% to 90% below their all-time highs, highlighting what he describes as a “relatively early” phase of market recovery.
ZERO said the following:
“Despite recent upside, most altcoins remain deeply undervalued from their peak levels. In more ways than one, this is still relatively early.”
The convergence of several factors, rising altcoin market cap, declining Bitcoin and USDT dominance, bullish technical structures, and improving investor sentiment, could very well suggest that a true altseason could be imminent.
In any case, if these trends continue into and beyond May 2025, the market may be entering a new phase of altcoin-led growth.
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