Bitcoin has been the unmistakable driver of the market rally for the past few months, with alts riding along on its coat tails. Sure, there were some fireworks here and there, with a few select coins popping off major gains – most notably Solana chalking up a hefty 442% increase over the past 90 days. Solana-based memecoin $BONK also saw a meteoric rise, and even a few older projects like Chainlink and Avalanche recovered some of their lost ground, as new presales like Galaxy Fox ($GFOX) vastly exceeded expectations. 

But if you took a step back and looked at the alts v. $BTC chart, Bitcoin was still crushing alts as a whole by a wide margin. Many leading altcoins, such as Cadano, Uniswap and Polkadot, remained down over 80% from their previous all-time highs, while meme coins, such as $DOGE and Shiba Inu, fared even worse – closer to 90% below their ATHs. 

Since the crypto rally began around October 10 of this year, the total crypto market valuation has grown by $590 billion. However, Bitcoin alone accounted for $333 billion, or 56% of all the capital that flowed into the crypto market during that period. 

But the tides may be turning – and two big indicators are backing that up. The first and most important signal is a bearish double-top in the Bitcoin dominance chart. Bitcoin Dominance hit a 2-year peak of 55% on December 4 but has entered a steep downtrend since then, signaling that investors are redirecting funds to the altcoin market to diversify their portfolio and amplify gains. The second is the fact that, despite the recent Bitcoin flash crash in the wee hours of Monday morning, several altcoins continued their upward trajectories as if nothing had happened. 

These ultra-resilient coins included Avalanche, Celestia, $BNB and Matic, to name just a few. Even Solana experienced only minor backlash, holding the price firmly to the $70 level.

This most recent $BTC pull-back could be a blessing in disguise as it may have kickstarted the much-anticipated altcoin season. Over the past week, altcoins attracted more than $64 billion in capital inflows. This further affirms the stance that altcoin that crypto investors are now allocating 60% of their capital toward altcoins.

In addition, Tether just printed another 1 billion dollars worth of $USDT – one of the most bullish signals in a market – at the same time that $BTC is staring at a possible retracement to the $36K level. Where is all that money headed? Most likely, into alts, smaller-cap projects, and presales like new memecoin/GameFI hybrid Galaxy Fox.  

Conclusion

After a long period of Bitcoin dominance favoring $BTC over alts, it seems investors are starting to rotate their profits back into alts – and especially smaller-cap alts, as well as older projects that are still down by 80-90%. This is a natural cycle in the market, and technicals are showing all the signs of a reversal pattern to back up this claim. Now may be a good time to start taking up alt positions, dusting off meme coins like $DOGE and $SHIB, and looking into some of the more interesting projects like $GFOX, which is now nearing the end of Stage 3 of its presale, just inches away from hitting $1 million. 

Keep a close eye on altcoin weekly charts for break-outs, and watch the Bitcoin dominance chart closely for reversal confirmation. It could just be all the cheery holiday music playing in the stores lately, but it sure feels a lot like alt season is upon us! 

Learn more about $GFOX here:

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This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice. Cryptocurrency is a volatile market; do your independent research and only invest what you can afford to lose. New token launches and small market capitalization coins are inherently more risky than large cap cryptocurrencies. These tokens are subject to larger liquidity and market risks.