- Altcoin Index falling below 25 signals fear, historically marking strong entry points for traders.
- A rare Golden Cross forms, echoing 2021 altseason patterns and boosting low-cap asset sentiment.
- Capital rotation from Bitcoin to altcoins gains pace as ETH/BTC trading and on-chain activity rise.
The crypto market is seeing conditions that mirror past setups before a major altcoin rally. Traders point to a double fakeout followed by early accumulation as signs that a new altseason may be forming. In 2021, the same pattern delivered strong returns, and 2025 now shows similar characteristics.
Altcoin Index Drops Below 25, Analysts Identify Early Entry Zones
According to an observation by Merlijn The Trader, the Altcoin Index has fallen under 25, which often reflects high fear in the market. He noted that this level has triggered previous rallies and labeled it as a possible buy zone. “Everyone’s calling for lower, but 99% is always wrong,” he stated.
Merlijn shared a chart showing that past drops to this level were followed by sharp altcoin growth. He indicated that a similar setup occurred in early 2021, which saw many coins deliver 10x gains. The current market behavior suggests a repeat, although this time driven by stronger fundamentals and utility-based projects.
Another analyst known as Chiefy added that a Golden Cross has just formed for the first time in four years. This technical signal appeared during the early stages of the 2021 altcoin surge. Chiefy noted, “Every $50 in the right alts now = $20,000 next month,” reflecting growing confidence in low-cap assets.
Rising Volumes and Institutional Flows Support Altcoin Momentum
Crypto funds saw $1.2 billion in inflows in the week ending October 20, 2024. Of this, 30% was directed into altcoin-focused products, suggesting broader interest beyond Bitcoin. This shift is also supported by growing trading activity in ETH/BTC and SOL/BTC pairs.
The Bitcoin Dominance Index has declined to 54.3%, according to TradingView. This often signals that capital is rotating into altcoins. On-chain data from Glassnode also shows an 8% increase in Ethereum active addresses. These trends suggest that altcoins are gaining attention, and traders are positioning early.
