A new altcoin season may soon begin, after the trend of Bitcoin's dominance was broken and continuous RSI bottom signals were confirmed.
Notably, the market structure from June 2025 shares many similarities with altcoin cycle bottoms in the past in 2015, 2019, and 2023.
Each of those historical milestones marks the beginning of prolonged price rallies, often yielding returns from 5 to 50 times.
With Bitcoin losing its dominance and altcoin strength returning, analysts warn that the market is about to experience a significant shift.
The collapse of Bitcoin's dominance triggers the signal for altcoin season.
Traders are currently paying attention to the significant decline in Bitcoin's dominance this month. According to Altcoin Buzz's analysis, Bitcoin's dominance has broken down from a rising wedge pattern, ending the trend that began in November 2024.
This ratio has closed below the main support zone gradually around 64.8%, thereby invalidating the wedge pattern and opening up the risk of a decline to 61% – a level that has appeared in previous rotations into altcoins.
Such breakdowns are not new, as historical data shows that altcoin seasons often begin when Bitcoin's dominance weakens. As the rate decreases, capital tends to shift to smaller and more volatile tokens.
This shift causes altcoin trading volumes to increase, while prices also expand more strongly. The RSI indicator on the dominance chart has also crossed down, further reinforcing the downward momentum.
Moreover, technical patterns during previous altcoin rallies often begin when Bitcoin is sideways. As the dominance rate declines, altcoins have a greater chance to outperform.
Currently, the market is in a very favorable position to enter this transition phase. Analysts believe that the current altcoin season aligns well both in terms of chart structure and the timeframe that occurred in 2015 and 2019.
Long-term RSI support confirms the altcoin rotation cycle.
Additionally, the RSI indicator of the total market capitalization of crypto (excluding the top 10 coins) also confirms the trend of capital flowing strongly into altcoins.
Analyst Gordon highlighted the fourth bounce of the RSI from the same long-term upward trendline, which previously triggered strong rallies of altcoins.
This trend has previously occurred in November 2015, September 2019, and June 2023. The bounce in June 2025 also comes from the same trendline.
Every time the RSI touches this long-term upward trendline, altcoins have surged strongly afterward. The RSI index around 36 in the current cycle also coincides with historical turning points.
These zones often represent accumulation phases with low momentum before the market breaks out strongly. Traders monitoring past RSI patterns have seen this bounce back as a reliable signal for a new price rally.
Meanwhile, the total market capitalization of altcoins has also begun to consolidate around historical support – the trend remains intact despite Bitcoin's volatility.
If the RSI continues to rise from the current range, this could confirm a new upward cycle for altcoins.
Altcoin traders expect profits of 150–175x when Bitcoin stagnates.
Analyst Discover believes that the third wave of altcoin season may 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 rate and capturing the momentum of altcoins.
This setup for 2025 may rely on cyclical models, which tend to repeat periodically every few years.
The chart shared by Discover shows altcoins rising 120x and 150x respectively after Bitcoin's dominance peaked.
According to forecasts for 2025, some small-cap assets could increase by up to 175 times if this pattern repeats.
Such cycles seem to be linked to the long-term rotation process between Bitcoin and altcoins. When Bitcoin's dominance rate is sideways or reverses downward, altcoins often benefit significantly.
The growth trend of high-speculation themes like DePIN, AI, and modular layer 1 blockchain is creating strong momentum for the market.
New capital flowing into crypto through ETFs 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 is overbought.
Adding to the series of convergence signals, analyst Javon Marks confirmed that Bitcoin's dominance rate has entered the extreme overbought territory.
His chart shows that the RSI had exceeded the overbought threshold in 2015 and 2019. Both times led to strong rallies of altcoins. He believes this third rally could once again trigger an explosive wave of altcoins.
The RSI chart shows a bearish divergence, meaning that momentum is weakening despite prices continuing to rise.
A similar pattern has appeared before significant declines in Bitcoin's dominance in the past. According to Javon, the market currently shows signs of entering a transition phase, as altcoins gradually take control of capital flows and become the new focal point for attracting money.