The fourth quarter of 2025 proved to be a difficult period for the cryptocurrency market, with most major assets ending the year in negative territory.
Despite fear and caution dominating the market, some analysts believe a rebound could still materialize. Market experts have identified three key signals that could signal the start of a potential altcoin season in 2026.
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Bullish divergence suggests possibility of altcoin reversal
The first important signal is the formation of a bullish divergence on the weekly charts across several altcoins. This occurs when the price has hit a lower low, but an indicator such as the Relative Strength Index (RSI) forms a higher low, suggesting that bearish momentum is weakening and a trend reversal is becoming more likely.
Cryptocurrency analyst Michael van de Poppe pointed to this development, citing Optimism, Arbitrum, Near, and Avalanche as examples. According to him,
“The weekly time frame is one of the most powerful time frames in which to build this. This is the year of the entire Web3 industry. It’s not a commodity.”
Altcoin dominance approaches breakout in multi-year pattern
The second metric is the Others.D metric. It tracks the total market power of all cryptocurrencies outside of the top 10 by market capitalization.
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In fact, Bitcoin, Ethereum, other large assets, and major stablecoins are excluded, giving insight into the strength of the broader altcoin market. Analysts say Others.D is nearing a breakout from a multi-year bear market.
From an analytical perspective, this is often interpreted as a potentially bullish structure. Analysts generally view a breakout above the upper trend line as a signal that buyers are regaining control, which could precede a broader trend reversal or sustained rally.
According to Bitcoinsensus data, Others.D is around 6.88%, indicating room for expansion if a breakout occurs. The analysis points out an upside target of 13.77%.
In a separate post, Bitcoinsensus drew attention to the recent performance of Bitcoin dominance as a possible early indicator of the approaching altcoin season.
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Altcoin trading volume surges despite price slump
The final signal comes from centralized trading volume data. According to on-chain analyst CW8900, altcoin volume ratios (excluding the top five cryptocurrencies) are “significantly higher” compared to previous cycles.
“Someone says, ‘There is no alternative season in this cycle,’ but on-chain data shows that altcoin trading is more active than in any previous cycle,” the analyst said.
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This high activity continues even as prices fall and retail investors retreat. Market watchers said:
“Altcoin dominance will shift to whales, who will drive up prices to maximize profits in this bull market.”
Despite these indicators, skepticism remains widespread. Crypto Twitter doesn’t have much hope for a broad-based altcoin rally on the scale seen in previous cycles. Adding to this view, Bitget CEO Gracy Chen said in October that altcoin season is unlikely to arrive until 2025 or 2026.
As bullish technical signals emerge with deep-seated doubts, the coming months will determine whether these patterns lead to sustained price momentum or remain signals without follow-through.
