Analysts Identify 3 Indicators That Could Signal an Altcoin Season in 2026

The fourth quarter of 2025 proved to be a challenging period for crypto markets, with most major assets ending the year in negative territory.

Despite fear and caution dominating the market, some analysts believe that a rebound may yet materialize. Market experts have identified three key signals that could point to the start of a potential altcoin season in 2026.

Bullish Divergences Signal Potential Altcoin Reversal

The first key signal is the formation of bullish divergences on weekly charts across several altcoins. This occurs when price hits lower lows but indicators, like the Relative Strength Index (RSI), form higher lows, suggesting weakening bearish momentum and increasing the probability of a trend reversal.

Cryptocurrency analyst Michaël van de Poppe pointed out this development, citing Optimism, Arbitrum, Near, and Avalanche as examples. According to him,

“The weekly timeframe is one of the strongest timeframes to be building this from. This is the year of the entire Web3 industry. Not commodities.”

Altcoin Dominance Nears Breakout in Multi-Year Pattern

The second indicator is the Others.D index. This tracks the combined market dominance of all cryptocurrencies outside the top 10 by market capitalization.

In practical terms, it excludes Bitcoin, Ethereum, other large-cap assets, and major stablecoins, offering insight into broader altcoin market strength. According to analysts, Others.D is nearing a breakout from a multi-year falling wedge.

Others.D Within Descending Wedge Pattern. Source: X/Bitcoinsensus

From an analytical perspective, this is often interpreted as a potentially bullish structure. Analysts generally view a breakout above the upper trendline as a signal that buyers are regaining control, which can precede a broader trend reversal or sustained upward move.

According to data from Bitcoinsensus, Others.D was around 6.88%, pointing to room for expansion if a breakout occurs. The analysis pointed to 13.77% as an upside target.

In a separate post, Bitcoinsensus drew attention to Bitcoin Dominance’s recent performance as a possible early indicator of an approaching altcoin season.

BITCOIN DOMINANCE REJECTION = ALTCOIN SEASON?