The crypto market has faced heavy losses since the October crash, eroding confidence. While many analysts argue that an altcoin season remains distant, emerging signals are beginning to shift sentiment.

In November 2025, a combination of market psychology, technical indicators, and renewed liquidity inflows suggests the early formation of a potential bull cycle in altcoins.

Bitcoin Dominance Signals Potential Capital Rotation

One of the most closely watched metrics in this context is the Bitcoin Dominance (BTC.D). This metric reflects Bitcoin’s share of total cryptocurrency market capitalization.

According to market data, BTC.D dropped in late June and continued moving downwards. It rebounded in September, though it has yet to reclaim its June highs. At press time, it stood at 59.94%

Bitcoin Dominance Chart. Source: TradingView

Despite this, analyst Matthew Hyland noted that the BTC.D chart is still bearish.

“The BTC Dominance…has looked bearish for many weeks. The downtrend is favorable to continue therefore, this relief rally has been a dead cat bounce in a downtrend,” Hyland wrote.

Analyst Michaël van de Poppe compared the current cycle to late 2019 and early 2020. At the time, Bitcoin Dominance first declined, briefly recovered, and then entered another major downward leg.

Van de Poppe suggests that today’s market may be at a similar turning point. The analyst anticipates a second drop in BTC.D this quarter.

Bitcoin Dominance Patterns in 2019-2020 Vs. November 2025. Source: X/CryptoMichNL

Adding to this, trader Don pointed to a head-and-shoulders structure on the Bitcoin Dominance chart, a bearish reversal signal. If confirmed, this would likely drive dominance even lower and shift capital toward altcoins.

“Rotation season might be closer than most think,” the trader wrote.

Market Psychology and Retail Participation

From a psychological perspective, an analyst Merlijn emphasized that altcoin seasons begin during market disbelief, when sentiment is at its lowest.

“ALTCOIN SEASON STARTS WHERE EVERYONE GIVES UP. Same base. Same wedge. Same disbelief. Every previous altseason was born here. Bitcoin cools. Liquidity rotates. It’s time for the real fireworks,” he stated.

Additionally, recent weekend rallies across altcoins indicate a renewed interest from retail investors. Such activity is often a bullish short-term sign, with sentiment shifting from apathy to cautious optimism.

New Liquidity, New Rally

Lastly, new sources of liquidity could become crucial catalysts for an upcoming wave of altcoin gains. BeInCrypto reported that the Federal Reserve is set to restart its quantitative easing program on December 1, a policy shift that could inject significant liquidity into financial markets.

Historically, such moves have lowered borrowing costs, boosted investor confidence, and redirected capital toward higher-risk assets, such as cryptocurrencies, potentially setting the stage for renewed momentum across the altcoin sector.

Despite several bullish signals, some analysts warn that a broader altcoin rally may still be far off.

Thus, the weeks ahead will reveal whether November 2025 launches a lasting altcoin rally or only a brief surge in speculation.