After Bitcoin (BTC USD), Is the Next Leg of the Bull Run Heading Toward Altcoins?

• ETH/BTC Tests Crucial Resistance: Is Altseason Around the Corner?
• Could Bitcoin’s Rally Pause to Fuel Altcoin Gains?
• How Traders Can Position for Ethereum and Altcoin Opportunities
• FAQs: Bitcoin, Altcoins, and the 2025 Market Cycle

Bitcoin (BTC USD) recently hit a new all-time high near $118,000, but traders are now eyeing altcoins like ethereum (ETH) for the next potential rally. With BTC dominance slightly declining and ETH/BTC testing a critical resistance level, the stage might be set for an "altseason." Institutional inflows into ETH spot ETFs and improving technicals for ETH/BTC suggest a possible rotation of capital into altcoins. However, confirmation hinges on key breakouts, including ETH/BTC closing above 0.026 BTC and Ethereum’s market dominance surpassing its 200-day moving average. Here’s what traders need to watch.

ETH/BTC Tests Crucial Resistance: Is Altseason Around the Corner?

The ETH/BTC pair has been in a downtrend for years, sliding from September 2022 highs of ~0.08 BTC to a record low near 0.018 BTC by April 2025. However, a promising recovery has emerged, with the pair rebounding ~42% from its April low and now testing resistance at 0.026 BTC. This level has repelled multiple breakout attempts in recent months, making it a make-or-break zone. A decisive daily close above 0.026 BTC WOULD mark ETH/BTC’s first break above its 200-day EMA in nearly a year—a historically bullish signal for altcoins.

Meanwhile, Bitcoin’s dominance is cooling off after its rally to new highs, creating room for Ethereum and other altcoins to shine. Institutional capital is already rotating into ETH, with spot ETFs netting over $2 billion in inflows in the last two months alone. If ETH/BTC breaks out convincingly, it could kickstart a period of ETH-led outperformance—potentially igniting a mini "altseason."

Could Bitcoin’s Rally Pause to Fuel Altcoin Gains?

Bitcoin’s surge to $118,000 has retail traders buzzing, but analysts like Michael van de Poppe predict a consolidation phase. His charts show BTC sweeping liquidity above $110,500 before stalling NEAR its ATH. Historically, when BTC cools off, capital rotates into altcoins—and early signs of this are emerging. Ethereum’s market dominance has risen ~14% in the last two weeks, though it still needs to clear its 200-day EMA (~9.95%) to confirm a trend shift.

Source: TradingView

Notably, ETH spot ETFs have attracted over $1 billion in July alone, signaling growing institutional interest. If BTC stabilizes, altcoins—especially high-utility projects like DeFi tokens or Layer-2 solutions—could catch fire. But timing is key: traders should wait for ETH/BTC and Ethereum’s dominance to confirm breakouts before rebalancing portfolios.

How Traders Can Position for Ethereum and Altcoin Opportunities

If ETH/BTC breaks out, increasing exposure to Ethereum could be strategic. Here’s a potential approach:

• Core Holding: Keep BTC as a stability anchor (e.g., 50-60% of portfolio).
• Ethereum Allocation: Boost ETH weight to 20-30% if ETH/BTC closes above 0.026 BTC.
• Altcoin Selection: Target high-conviction altcoins (e.g., DeFi blue chips or Layer-2 tokens) once ETH shows sustained strength.

Source: CoinGlass

Remember, past altseasons have been explosive but short-lived. As the BTCC team notes, "Altcoin rallies often start with ETH leading the charge, then trickle down to smaller caps. Don’t chase pumps—wait for confirmations."

FAQs: Bitcoin, Altcoins, and the 2025 Market Cycle

What’s driving Bitcoin’s recent all-time high?

Bitcoin’s surge to ~$118,000 on July 11 was fueled by institutional ETF inflows and spot market demand. The BTCC exchange reported record BTC futures open interest ahead of the breakout.

Why is ETH/BTC’s breakout important?

ETH/BTC is a benchmark for altcoin strength. A breakout above 0.026 BTC could signal capital rotation from BTC to altcoins, as seen in past cycles.

Are Ethereum ETFs a game-changer?

Yes. ETH spot ETFs have absorbed $2B+ since May 2025, per Farside Investors. This institutional demand could reduce ETH’s volatility vs. BTC.

When should I buy altcoins?

Wait for two confirmations: 1) ETH/BTC above 0.026 BTC, and 2) Ethereum’s dominance above its 200-day EMA (~9.95%).