Altseason 3.0: Bitcoin Dominance Hints at New Market Phase

Historical patterns in the crypto market are drawing renewed attention as analysts point to a potential Altseason 3.0 unfolding in 2026. With Bitcoin dominance nearing historical highs, similar to trends observed in 2017 and 2021, experts suggest a significant capital shift toward altcoins could be imminent.

Historical Patterns: Bitcoin Dominance and Altcoin Surges

Previous altcoin booms have closely followed peaks in Bitcoin dominance, notably during 2017 and 2021. As Bitcoin commands the market's attention, altcoins often lag—until a tipping point triggers widespread capital rotation. Analysts now see similar indicators reemerging.

The ETH/BTC trading pair recently bounced from a major support level, often a sign that capital may be shifting from Bitcoin into Ethereum and other altcoins. Supporting this view is the Altcoin Season Index, which shows growing momentum after a low in April 2025—though it has yet to cross the threshold that typically signals a full-blown altseason.

Analytical Insights: Cycle-Based Forecasting

Crypto market analyst DrBullZeus highlights a compelling four-year cycle pattern in the $OTHERS/BTC ratio, which compares altcoin market capitalization (excluding major players) to Bitcoin. His analysis identifies altseasons in 2018 and 2021, forecasting a third surge in 2026.

According to DrBullZeus, these altcoin rallies consistently follow BTC dominance peaks. As Bitcoin nears another dominance top, a reversal may set the stage for another massive capital rotation—potentially beginning in early to mid-2026.

Technical Signals: Altseason 3.0 in the Making?

Adding to this analysis, market commentator MrBigDott points out a rising channel pattern in the $OTHERS/BTC ratio. Each higher low has historically preceded a major altcoin rally. This current formation aligns with Bitcoin’s typical post-halving performance cycles, further reinforcing the likelihood of incoming altcoin strength.

Key observations include:

• BTC dominance chart patterns closely resemble the pre-2020 altseason era.
• ETH/BTC support bounce suggests strength in Ethereum.
• Rapid returns in low- and mid-cap altcoins may foreshadow wider market enthusiasm.

While the Altcoin Season Index hasn’t yet crossed the critical 50-point mark, its steady climb from the 2025 low suggests that the market may soon enter another explosive growth phase.