Is Altcoin the next destination after Bitcoin?

Bitcoin has reached a new all-time high of 118,856 dollars on July 11 with (ATH) and shows no signs of slowing down, thanks to increasing support from financial institutions.

Meanwhile, Ethereum (ETH) has also reached the $3,000 mark on the same day, pushing the ETH/BTC pair close to a key resistance level.

Technically, the daily chart of BTC still leans towards the bullish side, with higher lows being formed since the end of June and money flowing into spot ETF funds continuing to pump new liquidity.

However, as the dominance rate of BTC began to decline slightly and the Ethereum spot ETF attracted over $1 billion in inflows just in July, traders started to question: will altcoins lead the next rally of the 2025 bull cycle?

A decisive breakout of the ETH/BTC pair could be the answer and reshape market strategy in the upcoming third quarter.

ETH/BTC tests an important resistance level: Is the altcoin season approaching?

The ETH/BTC pair has experienced several years of continuous decline, sliding from a peak of around 0.08 BTC in September 2022 to a record low of nearly 0.018 BTC in April 2025.

However, this pair has ultimately shown signs of positive recovery by rising nearly 42% from the April low, and is currently testing the resistance area around the level of 0.026 BTC.

Notably, ETH/BTC has risen above the short-term moving averages (EMA 20 days and 50 days), indicating that momentum is clearly improving.

ETH/BTC price chart | Source: TradingviewHowever, the 200-day EMA along with the horizontal resistance level around 0.026 BTC has not yet been broken. This is the price level that has halted many upward attempts over the past few months, indicating its technical significance.

A decisive closing above the 0.026 BTC level will mark the first time ETH/BTC has crossed the 200-day EMA in nearly a year — an event that in previous cycles has typically signaled ETH's outperformance against BTC.

Meanwhile, the dominance rate of Bitcoin has started to decline slightly as the recent surge is cooling off, opening up space for ETH and other altcoins to break out.

At the same time, institutional capital is shifting towards Ethereum, as Ethereum spot ETFs have attracted over $2 billion in net inflows in just the past two months.

If the ETH/BTC pair can convincingly break the 0.026 threshold, this will trigger a phase where ETH leads the market and mark the beginning of a "small altcoin season."

The increase of Bitcoin stagnating causes capital flow to shift to altcoins?

Investor interest in predicting Bitcoin prices has surged significantly during the recent rally — a clear indication that retail traders are returning to the market. However, many experts and KOLs in the Web3 space are anticipating that the altcoin season will soon take place.

In the latest tweet, Michael van de Poppe shared a chart showing Bitcoin breaking out of the $110,500 level, attracting liquidity and soaring close to the historical peak of $118,000.

BTC price chart 1 day | Source: Michael van de PoppeVan de Poppe currently predicts that Bitcoin will enter a consolidation phase after the recent strong increase. On the chart, the breakout level above $106,500 previously led to a rapid increase to $108,000, indicating that when important liquidity zones are breached, the price can accelerate very quickly.

With the level of $110,000 becoming support, some long-term investors are starting to take profits – this behavior in the past has often led to minor corrections.

However, when the price of Bitcoin stabilizes again, traders' attention may shift to altcoins. Historically, when BTC "cools down", capital tends to flow into other coins. Currently, this pattern is starting to repeat.

Notably, the dominance rate of ETH has increased by nearly 14% in just the past two weeks.

ETH dominance rate | Source: TradingviewTraders should wait for a closing session above the current dominance level, specifically above the 200-day EMA of approximately 9.95%, to assess trend changes.

Therefore, the altcoin season will really need the dominance rate of BTC to decrease significantly further and for ETH/BTC to have a clear breakout.

Traders can restructure their portfolio to take advantage of the upward trend of ETH and altcoins.

If the market shows a bullish reversal signal for ETH/BTC, traders can adjust their portfolio by increasing their holding weight of ETH.

Specifically, increase the proportion of ETH in the portfolio, but at the same time still keep Bitcoin as a mainstay to maintain stability.

History shows that whenever ETH outperforms Bitcoin, the flow of money often spreads to other altcoins. Therefore, choosing a few highly applicable altcoins, such as DeFi tokens or Layer-2 projects, can help optimize profits during the bullish market phase.

However, the key factor is timing: investors should wait until the ETH/BTC ( pair and the market dominance ratio of Ethereum ) close above the 200-day EMA.

This technical signal will confirm the reversal trend, helping investors make more accurate restructuring decisions.

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