The altcoin market signals strong upside potential as it bottoms against BTC and shows altseason signs, as reported by crypto analyst Michael Van de Poppe. The aggregate altcoin market cap against Bitcoin has fallen as low as it can go.
The BTC/Altcoins chart (Others/BTC) indicates the performance of the altcoins against Bitcoin.
It has currently dipped to the 0.13 point mark, a place that has provided long-term bottoms in the past. It was last at this level in 2021, and the result was one of the strongest altcoin bull runs of all time.
Technical Indicators Show Bullish Divergence
The chart has some indications as to the bright future of altcoins. In terms of the chart rate of price on the “Others/BTC” chart, the prices are heading down, whereas the momentum indicators are headed up.
This is referred to as a bullish divergence and previously has been an indication that selling pressure is relaxing and that accumulation might now be taking place.
The volume of trading is also remaining high, thereby indicating that the market players are not idling. Heavy volume around support is generally an indicator that a turnaround can occur with buyers slowly outpacing the sellers.
Historical Patterns Hint at Big Altcoin Potential
In early 2021, when the Others/BTC chart was showing similarly low values, there was a massive rally in the market. Many altcoins experienced increases of 100x to 1000x within a few months as investors significantly shifted their investments from Bitcoin to these other coins.
Historical performances cannot predict future performances, but analysts indicate that performance in the market structures repeats when conditions match.
In case the momentum develops similarly, large upward movements of the tokens compared to Bitcoin may be possible in the next few months.
The market seems to be entering a critical stage. With the present bullish divergence holding up, there is a possibility that the market is on the cusp of a significant altseason that has the potential of redefining the crypto world the way that 2021 did.
