Analysts show that the market could be entering a new altcoin rotation phase. The setups compare past bull cycles to the current 2024–2025 structure, where altcoins are breaking out of prolonged consolidation. The analysts highlighted that the recent breakout could mark the start of a fresh leg for the broader market. Immediate dominance levels suggest that others are reclaiming momentum against Bitcoin, which suggests a shift in market capitalization rotation.
Analyst GEMs’ chart shows that altcoins have followed a familiar structure from the last bull cycle. In 2020-2021, the same formation broke out and led to huge gains as altcoins performed 100x better than Bitcoin. The trend seems to be repeating, and a breakout will indicate that the figure could go up 200x, provided the fractal holds. The formation is compressing in a bullish setup, pointing to a broader uptrend already underway.

Altcoins/Bitcoin Chart, Source: X
Moreover, momentum indicators indicate that strength remains strong, regardless of the recent cooling. The congruence between technical and momentum signals suggests that buyers are in control, and additional rotation might happen in the consequent weeks.
On a similar note, analyst Whale reflected the market setup of 2017, where six months of consolidation were followed by the strongest rallies in the history of Cryptocurrencies. Altcoin dominance is growing, which confirms that money has been rotated out of Bitcoin into mid-cap and small-cap currencies.

Source: X
Historically, such times have contributed to boom rallies as funds trickle down through the ecosystem. The two predictions suggest that the existing framework is favourable for a bullish extension, provided macro factors do not change.
Sentiment towards crypto is looking better with Bitcoin solidly trading above $120,000, showing that there is strong market momentum and liquidity is rotating, with many altcoins showing a sharp recovery. In the meantime, traders are gaining confidence with volatility returning to normalcy.
Additionally, capital inflows are motivated by the increased utilization of blockchain applications. More so, cross-chain innovations, Layer-1 upgrades, and DeFi integrations are giving basic support to rejuvenated growth. As a result, the basic building blocks of the ecosystem could support the market dynamics.
Altcoins appear to have a bull cycle like in the past, as the sector gains dominance and liquidity, with a promise of quick returns in 2025. As of writing, the crypto-market is holding, and Bitcoin is trading approximately at the range of $120,450, a stable risk-on position towards others.
Ronny Mugendi is an experienced crypto journalist with four years of professional expertise, having made substantial contributions to multiple media platforms covering cryptocurrency trends and innovations. With more than 4,000 published articles to his name, he is dedicated to informing, educating, and bringing more people into the world of Blockchain and DeFi. Beyond his journalism work, Ronny finds excitement in bike riding, enjoying the adventure of exploring fresh trails and landscapes.