Finance

Analysts Predict the Biggest Rotation Since 2021

12 hours ago
Bitcoin Ethereum News
Altcoins

Altcoin Season 3.0: Analysts Predict the Biggest Rotation Since 2021

After months of Bitcoin dominance keeping altcoins suppressed, market analysts are increasingly convinced that the long-awaited “Altcoin Season 3.0” may finally be on the horizon.

With Bitcoin trading just above $110,000 and its market dominance slipping under 60%, early signals suggest that capital could soon begin flowing into the broader altcoin market, potentially setting off a powerful multi-month rally.

Altcoin Market Cap Flashes Breakout Signal

According to CoinMarketCap’s Altcoin Season Index, the metric currently sits at 31, gradually rising from 26 yesterday and 35 last week. The index remains within Bitcoin’s dominance range, but its steady climb hints that sentiment may be shifting. Historically, readings above 75 indicate that altcoins are outperforming Bitcoin, marking the start of what traders call an “altseason.”

Market data shows the total altcoin market cap approaching a critical resistance level near $1.46 trillion, a ceiling that has limited growth since 2021. Analysts suggest that a confirmed monthly close above this level could trigger a market-wide breakout. Technical indicators are also beginning to align with this scenario: the MACD has crossed into bullish territory for only the third time in eight years. Each previous occurrence coincided with explosive altcoin rallies, most notably in 2017 and 2021.

Traders note that the current structure resembles those past setups, with the market consolidating along a long-term ascending support line. The recent flip of the 2021 high into strong support further strengthens the case for a sustained breakout, suggesting that the market may be preparing for a major upward phase rather than a short-term bounce.

Bitcoin Dominance Weakens as Rotation Begins

Bitcoin’s dominance chart is showing early signs of fatigue. Historically, each time Bitcoin dominance reached its multi-year downtrend line – first in 2015, then in 2019 – it preceded extended altcoin rallies. The same pattern now appears to be repeating as Bitcoin’s dominance begins to roll over from recent highs.

A breakdown below 55% would likely confirm that liquidity is rotating away from Bitcoin and toward smaller market-cap assets. The MACD on the dominance chart has already flipped bearish, indicating weakening momentum. Market strategists interpret this as a classic setup where capital exits Bitcoin’s parabolic phase and re-enters riskier altcoins, often leading to some of the most dramatic gains of the entire market cycle.

Analysts Eye the Start of “Altcoin Season 3.0”

Technical analysts are referring to the current structure as the third major altcoin season in crypto’s history. The first, in 2017, produced average gains of around 50x across the sector, while the second, in 2021, generated roughly 25x. Analysts now believe the market is entering a third stage, with similar price formations but supported by much larger liquidity and institutional involvement than in previous cycles.

Charts comparing all three cycles show a nearly identical pattern: an ascending trendline forming the foundation, followed by a breakout and exponential acceleration. The ongoing setup mirrors these past stages closely, suggesting that history may be preparing to rhyme once again.

Retail Interest on the Rise

Beyond technicals, retail activity is starting to climb. Google Trends data indicates a 40–50% increase in searches for “altcoin” and “altcoin season” since late September. Social media engagement across major crypto platforms has surged as traders and influencers discuss the potential rotation into altcoins. Historically, this type of early attention has preceded major market rallies by several weeks.

Investor interest often peaks once Bitcoin stabilizes near new all-time highs, freeing up capital for speculative rotations into smaller assets. With Bitcoin’s price now consolidating above $110,000 and volatility easing, conditions appear favorable for such a shift to begin.

What Lies Ahead for Altcoins

If these signals continue to develop, the fourth quarter of 2025 could mark the start of a new wave of altcoin growth, possibly rivaling or exceeding the intensity of the 2021 bull run. The ecosystem has matured significantly since then, with improved liquidity, more efficient exchanges, and increased institutional access. Layer-2 networks, cross-chain projects, and decentralized finance protocols have all built stronger fundamentals, offering a healthier foundation for long-term growth.

Still, analysts caution that Bitcoin’s stability remains the key determinant. A sharp correction could delay the rotation and dampen sentiment. Yet as long as Bitcoin maintains its strength while dominance trends lower, the probability of a broad altcoin surge remains high.

With technical, sentiment, and liquidity indicators now aligning across the board, market watchers agree on one thing: the stage appears set for the next major cycle in crypto. If the pattern holds true, Altcoin Season 3.0 could soon redefine the landscape of digital assets, echoing the explosive moves of past years but on a much larger scale.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

telegram

Author

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.

Related stories



Source: https://coindoo.com/altcoin-season-3-0-analysts-predict-the-biggest-rotation-since-2021/