TLDR:
- ETH/BTC ratio flips bullish, signaling a momentum shift from Bitcoin fueling an altcoin rally.
- BTC dominance shows early signs of breakdown, encouraging capital rotation.
- Analysts favor altcoins with strong fundamentals and sustained outperformance.
- SUI, XRP, and DOGE named among conviction plays for the upcoming rally.
Two top crypto analysts are painting a bullish picture for altcoins after months of Bitcoin dominance.
Their insights suggest investors might finally catch the breakout many have been waiting for. The shift comes as key market indicators start flashing green signals across multiple timeframes. Trading patterns show altcoins could be ready to outperform Bitcoin in the coming months.
Smart money appears to be positioning for what could become the most significant altcoin rally in over two years.
ETH/BTC Ratio Breaks Higher as Market Structure Shifts: Altcoin Rally Imminent?
Daan Crypto Trades points to a crucial development in the ETH/BTC ratio that has crypto traders buzzing.
The ratio is breaking above the bull market support band and flipping its market structure around. Weekly closes above 0.026 would confirm this breakout and signal broader altcoin strength ahead.
“Historically, ETH has always been the leader for market-wide altcoin outperformance,” Daan explains. He dismisses claims that Solana has replaced Ethereum as the altcoin strength indicator.
The potential for a solid altcoin run has not looked as good in over 2 years as it does now. Let me explain 👇
(Not calling for a full blown alt season, but there’s some potential, please read further).
1. The $ETH/BTC ratio is breaking higher and has flipped its market… pic.twitter.com/KpjnIBBU5H
— Daan Crypto Trades (@DaanCrypto) July 16, 2025
SOL’s monster rally this cycle failed to lift most altcoins, proving ETH remains the key barometer for sector-wide moves.
Bitcoin dominance is also starting to crack after approaching the critical 70% resistance level. While BTC.D has only broken down slightly, the risk-reward equation is becoming more favorable for altcoin investors as dominance climbs higher.
Crypto Investors Hunt for Higher Returns Beyond Bitcoin
The psychology driving altcoin interest is simple math. Bitcoin sitting around $120,000 feels too expensive for many retail investors seeking massive returns. This price level pushes capital down the risk curve as traders hunt for the next big winner.
Raoul Pal warns that altcoin season success requires serious conviction and proper asset allocation. “Your token must outperform SOL, ETH and BTC to even matter,” he states.
The macro expert emphasizes that weekly charts must prove outperformance over time, not just short-term pumps.
He highlights SUI as his current conviction play, citing its consistent outperformance and growing network metrics. Growing wallet numbers, transaction volumes, and developer activity signal legitimate network effects rather than speculative bubbles.
Alts season can be amazing or devastating…
First the tide doesn’t lift all boats so asset allocation is crucial !
Second, remember it usually happens in rolling pumps on different tokens. FOMO at these times will kill, conviction pays.
What is conviction? Your token must…
— Raoul Pal (@RaoulGMI) July 16, 2025
Strategic Allocation Shifts Signal Confidence in Altcoin Rally
Both analysts are adjusting their portfolio allocations to capture potential altcoin gains.
Daan currently maintains an 80/20 Bitcoin to altcoin ratio but plans to scale toward 50/50 if strength continues. This represents a significant shift from his typically conservative approach.
Raoul’s bag includes mainly SUI with ETH exposure through NFTs, plus positions in XRP, DOGE, and other tokens. He describes himself as a “mercenary for my own capital” who will switch positions based on performance data.
The experts agree that sector rotation will likely dominate over broad market rallies. Too many tokens exist for universal altcoin season, but 2-3 strong narratives running simultaneously could create profitable rotation opportunities.
Risk Management Remains Critical Despite Bullish Outlook
Success in altcoin trading demands disciplined risk management, according to both analysts.
Raoul warns against frequent position changes, noting that “near zero short term traders actually accrue wealth in markets.” The wealthiest crypto investors found BTC, ETH, and SOL early and simply held through volatility.
Time horizon matters enormously in altcoin investing. Conviction requires proof of sustained network growth over months, not days. Tokens that fail to outperform major cryptocurrencies over weekly timeframes deserve swift elimination from portfolios.
Both experts stress monitoring performance constantly and cutting underperforming positions quickly. Sticking with strength and avoiding emotional attachment to losing trades separates successful altcoin investors from the rest.
