Core Insights - Recent data indicates that the gap between altcoin performance and USDT dominance has narrowed to its lowest in months, which is often a significant signal for market movements [2] - Analyst Altcoin Vector suggests that historically, such patterns lead to an "altcoin season" [2] - The current negative correlation between altcoins (excluding the top ten by market cap) and USDT dominance is approaching a state similar to that seen before a major price surge at the end of 2024 [2] Market Dynamics - Confirmation signals for a potential altcoin season include a decline in USDT dominance (indicating a rise in risk appetite) and a rebound in the altcoin/BTC exchange rate, suggesting a rotation of funds [2] - It is noted that before this potential surge, altcoins will likely continue to follow liquidity trends and remain under Bitcoin's influence, preparing for a breakout [2] Historical Comparison - The current market structure is compared to the cycle from October to December 2024, where Bitcoin dominance peaked and funds shifted towards Ethereum and mainstream altcoins, resulting in widespread price increases [2] - The typical cycle consists of four stages: 1. Bitcoin leads the market while altcoins remain under pressure 2. Fund rotation initiates altcoin rallies [2] Individual Altcoin Signals - Specific altcoins are showing optimistic signals: - DOGE has been gradually rising since June and is currently "severely compressed"; if it stabilizes above the 200-day moving average, a breakout may occur [2] - Ethereum (ETH) is viewed as undergoing a typical bull market correction rather than a trend reversal, with institutions significantly increasing their holdings; for instance, BlackRock's ETHA has purchased $1.4 billion worth of ETH [2] - Support for ETH is identified at $4240, with resistance at $5000; a breakthrough could lead to a target of $6000 [2]