Altseason brewing? Triple bottom in altcoin market cap hints at upcoming rally

As Bitcoin kicks off the week with renewed strength, climbing past $88,500 — it’s highest point since March 25, speculation is growing that an altcoin season may be just around the corner

A recent X post by a well-known analyst Miles Deutscher has reignited the excitement about the upcoming altcoin season, highlighting two technical developments that may give rise to major altcoin rallies in the coming weeks.

First, Deutscher highlighted a stark divergence between Bitcoin (BTC) and U.S. equities. While the S&P 500 has trended lower in recent weeks, weighed down by macroeconomic uncertainty and trade tensions, Bitcoin has moved decisively higher — up over 3% on Monday alone and continuing to climb past $88,500 today.

This divergence comes as gold recently surged to a new all-time high, briefly touching $3,500 before pulling back to $3,455 at press time. Historically, strong performance in gold precedes upward moves in BTC, reinforcing the idea that BTC may once again be viewed as a safe-haven alternative.

This combination of BTC breaking away from equities and reestablishing its correlation with gold is laying a foundation for altcoin resurgence, as BTC rallies often set the stage for altseason. The case is further strengthened by Deutscher’s second observation that the altcoin market cap appears to have formed a triple bottom — a bullish pattern where prices test and rebound from the same support level three times, signaling a potential trend reversal.

At the same time, institutional confidence in BTC appears to be increasing. U.S.-based spot Bitcoin exchange-traded funds recently posted their highest daily inflows in three months, driven by a resurgence in risk-on sentiment following Trump’s renewed threats to dismiss Federal Reserve Chair Jerome Powell.

Additionally, stablecoins — a proxy for crypto liquidity — have seen significant growth over the past eight months, with Tether’s (USDT) market cap growing 26% and USD Coin’s (USDC) market cap surging 93% over the same period. This suggests that capital is continuing to flow into crypto despite the ongoing trade tensions.

Still, some analysts remain skeptical about an imminent altseason. Matrixport recently pointed to the lack of dovish Fed policy and Ethereum’s declining dominance as factors that continue to dampen sustained interest in altcoins. So, if altseason is indeed on horizon, it’ll likely to take a while to materialize. The CoinMarketCap Altcoin Season Index is currently sitting at just 16 — well below the 75 threshold that typically signals altcoin season is underway.