Michaël van de Poppe reported that the altcoin market has displayed an important historical indicator through its massive upward movement compared to Bitcoin.
The OTHERS data, which tracks altcoins except for Bitcoin and Ethereum, has started to show upward signals compared to Bitcoin’s dominance, says Van de Poppe. Historic patterns of this nature served as indicators of major market lows for altcoins before significant price upticks occurred.
A 2019-like Situation: A Key Turning Point?
The past instance of this sizeable bullish divergence took place in 2019 as the altcoin market entered its major bounce period after enduring an extensive bear market.
The 2019 divergence revealed traders had finished selling their positions, which initiated a several-month bullish run throughout multiple alternative coins. Data suggests that the current configuration might trigger another turning point similar to what occurred in 2019 across the entire altcoin marketplace.
Altcoin Market Sentiment at a Crossroads
Bitcoin keeps leading media coverage due to its recent $95,000 high, while altcoins remain behind due to poor momentum alongside restricted investor interest.
Sentiment shifts commonly start after bullish divergences appear. Investors who search for enhanced returns above Bitcoin are likely to trigger significant movement in the altcoin market.
Watch for Confirmation
At this moment, the divergence serves as a preliminary indication, but not as a sure indicator. Market participants will keep a close eye on three factors to validate this potential shift: increased altcoin market action, flourishing altcoin-to-Bitcoin exchange rates, and stronger trading volumes that indicate a trend change.
Market confirmation during the forthcoming months will be crucial for altcoins.
