AltSeason Index hits multi-month high as Zcash, Bittensor and Morpho outpace Bitcoin by wide margins

The percentage of altcoins on Binance trading above their 200-day moving average has climbed to 21%, the highest reading since September 2025, as the 90-day AltSeason Index simultaneously surged to 28.6, prompting analysts at CryptoQuant to describe early rotation signals building quietly beneath a market still dominated by Bitcoin.

Several analysts highlighted that current Altseason signs remain early and relatively muted compared to previous euphoric rallies. Still, improving market structure and renewed investor appetite suggest the sector may be entering the initial phase of recovery.

Altcoin metrics begin turning positive

One of the clearest Altseason signs identified by analysts comes from Binance trading data. According to CryptoQuant analyst Darkfost, the percentage of altcoins trading above their 200-day moving average on Binance has climbed to 21%, a level not seen since September 2025.

The metric is widely viewed as an indicator of improving market health because it measures how many assets are regaining long-term bullish momentum.

Darkfost said the altcoin sector had previously plunged by more than 50% due to macroeconomic pressure and declining investor confidence. However, he noted that conditions now appear to be improving gradually.

“Investor interest in altcoins appears to be gradually returning,” Darkfost wrote in a Quicktake market note published Wednesday.

The latest Altseason signs also coincide with a rise in trading activity on centralized exchanges, where traders are increasingly rotating capital into select high-performing altcoins instead of remaining fully concentrated in Bitcoin.

The market’s 90-day AltSeason Index has also climbed sharply to 28.6, its highest reading in months. The index measures whether the majority of top altcoins outperform Bitcoin over a three-month period.

CryptoQuant analyst CW8900 described the rapid increase in the index as another indication that the market may be transitioning toward a broader altcoin rally.

“The altseason is starting quietly,” CW8900 said in a recent Quicktake analysis.

Despite the optimism, analysts cautioned that the current reading remains far below the official altseason threshold established by Blockchaincenter, which requires at least 75% of the top 50 cryptocurrencies to outperform Bitcoin over 90 days.

Even so, rising momentum remains one of the strongest Altseason signs investors have seen since the previous market downturn.

Select Altcoins outperform Bitcoin

While Bitcoin continues to dominate the market overall, several altcoins have already delivered gains significantly above BTC’s performance over the past three months.

Among the standout performers are Zcash, Bittensor, and Morphor. According to market data, ZEC surged 98% during the period, while TAO and MORPHOR climbed 72% and 68%, respectively.

By comparison, Bitcoin gained roughly 17% over the same timeframe.

These performance gaps are increasingly being cited as additional Altseason signs, particularly as traders search for higher returns beyond Bitcoin’s relatively stable price movement.

Analysts say this pattern historically emerges during the early stages of altcoin cycles, when institutional and retail investors begin reallocating profits from Bitcoin into smaller-cap digital assets with stronger upside potential.

However, market participants remain cautious. Bitcoin still commands significant dominance across the crypto ecosystem, and some analysts warn that a true altseason cannot begin unless BTC dominance weakens more substantially.

The Bitcoin Dominance Index recently climbed to its highest level since November 2025, underscoring the continued strength of Bitcoin relative to the broader market.

That trend has remained largely intact since 2023, limiting the scale of previous altcoin rallies despite periodic bursts of speculative activity.

Still, the persistence of selective outperformance continues to reinforce emerging Altseason signs across the market.

TOTAL2 breakout fuels bullish predictions

Another major catalyst behind growing Altseason signs is the improving technical structure of TOTAL2, the widely tracked chart measuring the combined market capitalization of all cryptocurrencies excluding Bitcoin.

According to TradingView data, TOTAL2 recently bounced from the lower trendline of a multi-year broadening wedge pattern that has shaped price action since mid-2022.

Analyst cryptocupra argued that the breakout resembles the setup that preceded the explosive 2021 altcoin rally.

In a post published Wednesday on X, the analyst suggested TOTAL2 could potentially surge toward an $8 trillion valuation if the breakout pattern fully develops.

“Altseason is inevitable,” cryptocupra wrote.

Another market analyst known as Nebraskangooner also pointed to bullish chart developments, highlighting TOTAL2 breaking above the upper resistance level of an ascending triangle formation on the daily timeframe.

According to the analyst, the structure signals a potential shift from accumulation into expansion, adding to broader Altseason signs building throughout the market.

Crypto analyst GorkemCrypto further supported the bullish case by comparing current market conditions to a 2021 fractal pattern that projected Bitcoin dominance falling toward 40% as capital rotates aggressively into altcoins.

If that scenario materializes, analysts believe the market could experience a much larger and more sustained altcoin rally heading into 2026.

Bitcoin still holds market control

Despite mounting Altseason signs, analysts stress that the broader market remains firmly under Bitcoin’s influence for now.

Bitcoin dominance continues to hover near multi-year highs, indicating that investors still favor BTC during periods of economic uncertainty and volatile macro conditions.

Historically, sustained altseasons tend to occur only after Bitcoin completes a strong upward move and capital begins flowing into riskier digital assets.

For now, analysts say the crypto market appears to be in the transition phase between Bitcoin-led momentum and broader altcoin participation.

Whether the current recovery develops into a full-scale altseason will likely depend on several factors, including macroeconomic stability, institutional demand, ETF-related capital inflows, and Bitcoin’s ability to maintain bullish sentiment without absorbing all available liquidity.

Still, traders and analysts alike agree that current market behavior is producing some of the clearest Altseason signs seen in recent months.

While the market has not officially entered altseason territory, the growing strength across altcoins, improving technical setups, and rising investor activity suggest the foundation for a larger rally may already be forming quietly beneath the surface.