Crypto analyst Merlijn The Trader believes the altcoin market is poised to enter a major rally phase, potentially signaling the start of a “generational bottom.” In a recent X post, he highlighted the presence of a rare technical setup – a “cycle-level bottom” – on the monthly charts of altcoins versus Bitcoin. This pattern has historically preceded explosive market expansions and has only occurred three times in the past eight years. 2018 and 2020 witnessed similar patterns, leading to significant gains for Ethereum, Solana, and other Layer-1 networks that reached record highs during the 2021 peak. Merlijn believes this current price level may indicate a unique accumulation phase. “This is how generational trades begin, before the noise, before the hype,” he wrote. The accompanying chart showcases three crucial moments of momentum reversal between altcoins and Bitcoin, each characterized by a shift in capital rotation from Bitcoin dominance to broader altcoin market participation. Merlijn’s latest signal, mirroring past patterns, suggests that altcoins may be on the brink of a multi-year resurgence. The prediction comes amidst renewed optimism following Bitcoin’s rebound above $109,000 and easing global macro risks. This could potentially see liquidity flow from Bitcoin into high-beta altcoins like Ethereum, Solana, and Avalanche. While many traders remain cautious after a year of underperformance for non-BTC assets, Merlijn’s post reflects a growing belief that the altcoin winter may be coming to an end.