Bitcoin’s had a great start to the year, climbing over 7%. While that’s exciting for Bitcoin holders, many are looking towards altcoins for bigger gains. History shows that strong Bitcoin rallies often pave the way for altcoin surges, and things are looking promising.
The Signs are Pointing to an Alt Season
Analyst Jelle’s recent analysis on X suggests a big shift is coming. They’re focusing on TOTAL3, a market cap index that leaves out Bitcoin and Ethereum. Jelle believes TOTAL3 is about to enter “price discovery”—meaning it’s primed to hit new highs as buying pressure increases.
Adding to this, Bitcoin dominance (Bitcoin’s share of the total crypto market) has just dropped. This weakening of Bitcoin’s control is a classic sign that altcoins are about to take center stage. All this points towards an “alt season”—a period where altcoins outperform Bitcoin. With Bitcoin holding steady near key support levels, the time might be right for altcoins to shine. The next few weeks will be crucial to see if this trend takes off.
Bitcoin’s Strength and the Altcoin Opportunity
Bitcoin had an amazing 2024, reaching new highs. While it’s still strong in 2025, the market dynamics are shifting. Historically, Bitcoin’s dominance falls when altcoins gain momentum, and this year could be the same.
Jelle’s analysis of TOTAL3 and Bitcoin dominance supports this. As Bitcoin stabilizes, money often flows into altcoins, leading to an alt season. During these periods, altcoins often significantly outperform Bitcoin, offering great returns for those who diversify. The combination of a strong Bitcoin and the potential for altcoin gains makes 2025 look potentially huge for the whole crypto market. As TOTAL3 nears price discovery and Bitcoin dominance weakens, the altcoin opportunity becomes even clearer.
Bitcoin’s Price: Key Levels to Watch
Bitcoin’s currently trading around $97,900, testing the crucial 4-hour 200 Moving Average (MA) at $98,139. Breaking above this level would be a strong bullish signal, potentially pushing Bitcoin past $100,000.
However, if Bitcoin fails to hold above the 4-hour 200 MA, we could see a period of sideways trading. The key support level to watch is the 4-hour 200 Exponential Moving Average (EMA) at $95,881. Falling below this could trigger a deeper correction. Essentially, Bitcoin’s short-term direction depends on whether it can stay above the 4-hour 200 MA and push higher. The next few days will be critical.