Clear signs indicate that the altcoin season 3.0 is about to begin.

A new altcoin season may be about to begin, after the dominance trend of Bitcoin has broken down and continuous bottom out RSI signals are confirmed.

Notably, the market structure from June 2025 has many similarities with the altcoin cycle bottoms in the past in the years 2015, 2019, and 2023.

Each historical milestone marks the beginning of prolonged price increases lasting several months, often yielding returns from 5 times to 50 times.

With Bitcoin gradually losing its dominance and the strength of altcoins returning, analysts warn that the market is about to experience a significant shift.

The dominance rate of Bitcoin collapsing triggers altcoin season signals

Traders are currently paying attention to the significant decline in Bitcoin's dominance rate this month. According to analysis from Altcoin Buzz, Bitcoin's dominance rate has broken down from a rising wedge pattern, ending the trend that began in November 2024.

This rate has closed below the key support area gradually around 64.8%, thus invalidating the wedge pattern and opening up the risk of a drop to 61% – a level that has previously appeared during rotations to altcoins.

Source: Altcoin BuzzSuch bearish breakdowns are not new, as historical data shows that alt season often begins when Bitcoin's dominance rate weakens. As the rate declines, capital tends to flow into smaller and more volatile tokens.

This shift has led to an increase in altcoin trading volume, while prices have also expanded more strongly. The RSI indicator on the dominance ratio chart has also cut down, further reinforcing the downward momentum.

In addition, technical patterns in previous altcoin rallies often begin when Bitcoin is moving sideways. When the dominance rate declines, altcoins have a chance to outperform.

Currently, the market is in a very suitable state to enter this transitional phase. Analysts believe that the current alt season is appropriate both in terms of chart structure and the timeframe that occurred in 2015 and 2019.

Long-term RSI support confirms altcoin rotation cycle

Additionally, the RSI indicator of the total market capitalization of crypto ( excluding the 10 largest coins ) also confirms that the flow of funds is shifting strongly towards altcoins.

Analyst Gordon emphasized the fourth RSI bounce from the same multi-year uptrend line, which has previously triggered strong altcoin rallies.

This trend has occurred in November 2015, September 2019, and June 2023. The bounce in June 2025 also comes from the same trend line.

Source: GordonEvery time the RSI touches this long-term upward trend line, the altcoin tends to rise sharply afterwards. The RSI index around level 36 in the current cycle also coincides with reversal points in history.

Those areas often represent the accumulation phase with low momentum before the market breaks out strongly. Traders monitoring the RSI pattern in the past have viewed this bounce as a reliable signal for the new price increase.

Meanwhile, the total market capitalization of altcoins is also starting to consolidate around the historical support zone – the trend remains intact despite Bitcoin's volatility.

If RSI continues to rise from the current range, this could confirm a new bullish cycle for altcoin.

Altcoin traders expect a profit of 150–175x when Bitcoin stabilizes

Discover analysts believe that the third wave of altcoin season could match or even surpass previous rallies.

In the cycles of 2017 and 2021, Discover turned $212 into over $200,000 by timing the peak of Bitcoin's dominance and capturing the momentum of altcoins.

The 2025 setup this time can be based on the cyclical model, which inherently repeats periodically every few years.

Source: DiscoverThe chart shared by Discover shows altcoin increasing by 120x and 150x respectively after Bitcoin's dominance rate peaked.

According to forecasts for 2025, some small-cap assets could increase by up to 175 times if this pattern repeats.

Cycles like these seem to be related to the long-term rotation between Bitcoin and altcoin. When the dominance rate of Bitcoin moves sideways or reverses downward, altcoin usually benefits significantly.

The growth trend of high speculation themes such as DePIN, AI, and modular layer 1 blockchain is creating strong momentum for the market.

New capital flowing into crypto through ETF funds and stablecoins may be seeking asymmetric profit opportunities, and altcoins are often the optimal choice during the rotation phase at market peaks.

Analyst warns that Bitcoin's dominance ratio is overbought

In addition to the series of converging signals, analyst Javon Marks confirmed that the dominance rate of Bitcoin has entered a severely overbought zone.

Your chart shows that the RSI once exceeded the overbought threshold in 2015 and 2019. Both times led to a strong rally in altcoins. You believe that this third rally could once again trigger a surge in the alt season.

Source: Javon MarksThe RSI chart shows a bearish divergence, meaning the momentum is gradually weakening even though the price continues to rise.

A similar pattern has also appeared before sharp declines in Bitcoin's dominance rate in the past. According to Javon, the market is currently showing signs of entering a transition phase, as altcoins gradually take control of capital flows and become the new focal point for attracting funds.

Minh Anh