- In 2015 and 2019, historical double bottom patterns led to enormous increases in altcoins, and a similar trend could give the market the same boost in 2023–2025.
- Declining Bitcoin market share and increasing TOTAL2 are indications of liquidity rotation, which facilitates faster flows into altcoins and preconditions a new surge.
- Current market structure is stronger, with broader adoption and deeper liquidity, suggesting 2025 altseason could exceed previous cycles in scale and momentum.
Altseason is brewing as structural patterns in the altcoin market point toward another cycle of capital rotation. Historical setups suggest the current breakout could support broader liquidity and deeper adoption, setting the stage for accelerated market flows in 2025.
Historical Setups and Market Repetition
The chart shared by Merlijn The Trader illustrates how the altcoin market has consistently repeated structural formations since 2015. In that year, a clear double bottom appeared before altcoins surged in 2017 with an unprecedented 996x rally. This run was the first evidence of exponential liquidity entering the crypto market on a large scale.
In 2019, a similar setup materialized, once again forming a double bottom that carried into 2021. This phase delivered a 150x surge across altcoins, powered by broader participation. Institutional money joined the market during this cycle, bringing stronger credibility and deeper trading flows across multiple assets.
The current structure reflects this same foundation. Since 2023, the altcoin market has printed a double bottom on higher timeframes. With trendlines breached and the pattern confirmed, analysts observe that the market is aligning with previous explosive periods while resting on a much larger base.
Growing Liquidity and Expanding Market Base
Merlijn The Trader emphasized that the foundation for this cycle is not only wider but also supported by greater global liquidity. Unlike earlier cycles, adoption is stronger, and trading volumes reflect more consistent flows into altcoins. This structural backdrop positions the market for broader acceleration if history continues to guide forward movement.
Liquidity strength plays a decisive role in every cycle. In 2017, new capital entered the market rapidly, while in 2021, participation expanded through institutional involvement. Now, analysts suggest that both retail and institutional activity are supporting the breakout, adding to the scale of the potential run.
As adoption deepens across global markets, altcoins appear better positioned than in earlier cycles. This growing foundation suggests the breakout is not confined to speculative participation but tied to a stronger market infrastructure that has evolved over the last decade.
Bitcoin Dominance and Altseason Indicators
Supporting this outlook, market analyst Chuck pointed to Bitcoin dominance and liquidity rotation. He noted that Bitcoin dominance is falling while TOTAL2, the altcoin market capitalization excluding Bitcoin, continues to rise. Historically, this pattern has preceded explosive upward phases for altcoins.
Capital rotation is a recurring feature of altseasons. When Bitcoin consolidates or declines in dominance, liquidity often seeks higher returns in altcoins. Current conditions reflect this transition, creating a solid foundation for potential growth across alternative assets.
Chuck also noted that the Altseason Index has reached 63, its highest level in six months. Historically, readings above 50 have consistently shown altcoins outperforming Bitcoin in profitability. According to his analysis, liquidity rotation has already started, and the signals indicate an upcoming wave of accelerated movements in the altcoin market.
