In recent days, Ethereum has outperformed Bitcoin in price action, reigniting the debate about a potential altseason comeback. Crypto analyst Michaël van de Poppe shared an intriguing chart that could indicate a shift in sentiment. The chart displays the OTHERS/BTC ratio, which measures the strength of the altcoin market compared to Bitcoin. 📈
This weekly chart suggests that altcoins may be forming a long-term bottom based on strong bullish divergences, particularly when looking at the RSI.
These divergences indicate a momentum shift as prices have been falling or consolidating while the RSI is starting to climb, signaling potential reversal. This pattern resembles past cycles before altcoins saw gains against Bitcoin.
Michaël van de Poppe highlighted this trend with an interesting comparison.
His chart shows a green accumulation zone that marks a new bottoming process, reminiscent of similar patterns seen before the 2021 altcoin rally. Additionally, there’s a breakout from a falling wedge pattern, further strengthening the bullish outlook.
The price action has flattened out, volume is picking up, and the downtrend might be losing its grip. This aligns with historical market behavior, as previous crypto bottoms for altcoins occurred around this phase, typically one year before Bitcoin’s halving rally kicked in fully.
Michaël van de Poppe’s analysis extends beyond technical indicators. He acknowledges the changing macroeconomic climate, including the potential decline in interest rates and increased liquidity. If these factors occur, risk-on assets like altcoins tend to benefit first.
When money flows out of Bitcoin, altcoins often become the next destination, suggesting a possible rotation is taking place.
Despite some encouraging signs, caution is necessary. Early signals don’t always guarantee immediate rallies. Altcoin bottoms take time to form, sometimes sideways for weeks or even months before any significant breakout occurs. However, according to this chart, the worst may be behind us, at least in terms of altcoins’ performance against Bitcoin.
If the OTHERS/BTC ratio steadily rises, it could signify a shift towards increased altcoin strength. This upward movement would likely accelerate a rotation from Bitcoin into altcoins, potentially marking the beginning of the long-awaited altseason.
For now, this chart suggests something is changing in the market, and traders keeping a close watch might want to re-evaluate their approach.
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