- TOTAL3 index breakout and Bitcoin dominance drop signal altcoin market rotation.
- Altcoin Season Index bounce mirrors past pre-altseason rallies, now climbing toward 75.
- Bullish sentiment grows as Fear and Greed Index hits 69 amid rising total market cap.
As the cryptocurrency landscape charges into the second half of 2025, a growing number of analysts are signaling what could be one of the most significant altcoin seasons in digital asset history.
With capital seemingly rotating out of Bitcoin and into altcoins, fresh technical breakouts, and increasing investor appetite, market data points to a major momentum shift in favor of alternative cryptocurrencies. Despite Bitcoin’s dominance still holding the lion’s share of the market, the tide appears to be turning as the broader altcoin market shows signs of revival and renewed strength.
Breakout Confirmation: TOTAL3 Signals a Bullish Shift
According to insights from CryptoBusy, the TOTAL3 index which tracks the crypto market cap excluding Bitcoin and Ethereum has recently broken out of a long-standing falling wedge pattern with a notable 8.85% jump.
This technical move not only breached a multi-month downtrend but also flipped a critical long-term trendline into support, solidifying the bullish reversal. Currently hovering just beneath a significant resistance level at $1.07 trillion, the index has strong footing above its support zone around $830 billion.
This surge aligns with a drop in Bitcoin dominance, which has fallen to 60.9%, down 3.2% in recent weeks. Ethereum and mid- to lower-cap altcoins are absorbing that market share, suggesting a clear capital rotation a key indicator historically associated with altseasons. This behavior, seen repeatedly in past cycles, underscores a reallocation of risk appetite toward smaller, potentially higher-reward assets.
Altcoin breakout confirmed! 🚨
— CryptoBusy (@CryptoBusy) July 18, 2025
TOTAL3 (crypto market cap excluding $BTC & $ETH)
broke out of its multi-month falling wedge with a +8.85% move! Flipping the long-term trendline support.
Bitcoin dominance is falling.
Ethereum and others are gaining share.
The altseason… pic.twitter.com/KtGDhp2vPM
Altcoin Season Index: Historical Patterns Repeat
Master of Crypto points to a potentially pivotal bounce in the Altcoin Season Index, which recently rebounded from the “Bitcoin Season” territory near 25. Similar patterns in 2018, 2020, and 2021 preceded robust altcoin bull runs.
The index has now climbed to 38, not yet signaling full-blown altseason, but indicating a strong trajectory toward the threshold of 75 the level historically marking altcoin dominance.
Strategically, this sets the stage for what could be the final major altseason before the broader cycle peaks. Investors may want to balance enthusiasm with caution—history suggests that while gains can be swift and substantial, corrections often follow with equal force.
Sentiment and Market Trends Support the Narrative
Currently, the Fear and Greed Index registers at 69 firmly in “Greed” territory implying strong bullish sentiment. Although major cryptocurrencies like Bitcoin and Ethereum are experiencing modest dips, the overall market cap is rising, now at $3.86 trillion.
The past 30-day trend also shows consistent upward momentum, reinforcing the idea that the market is preparing for a broader altcoin expansion.
