- According to the TOTAL3/BTC chart, there might be an altcoin reversal around a critical support zone in a descending channel.
- RSI divergence and tightening price action suggest growing underlying momentum for altcoins.
- Breakout confirmation depends on volume increase, RSI crossing 50, and broader market behavior—particularly Bitcoin dominance trends.
A significant turning point may be approaching for the altcoin market, as recent technical signals on the TOTAL3/BTC chart suggest a possible breakout from a multi-year downtrend. The chart by StockmoneyL, displays the combined value of all altcoins apart from Bitcoin and Ethereum in comparison to Bitcoin and the trend looks stronger, indicating a possible return for altcoins. Traders are paying attention as the prices tighten and the RSI moves apart near a significant support point.
Since late 2022, the RSI has set a series of higher lows, while the chart still remained in the decline in price. This is a bullish divergence that is frequently a sign that bear momentum is losing steam even as prices continue to decline.
Currently remaining above 42, the RSI remains above its current trendline, showing a gentle build-up of buying pressure. Traders will be watching for a decisive RSI move above the 50 level—a typical signal of shifting momentum in favor of bulls.
Long-Term Decline Approaches Inflection Point
The TOTAL3/BTC index reached its highest point in early 2021 and has remained within a channel with lower highs and lower lows since then. Such a trend reveals that Bitcoin has been stronger than altcoins in the market over the past few years. Currently, the price is close to the lower edge of the chart which has typically been a strong support spot for the market over time.
Recent candlestick patterns show that prices are becoming narrow, suggesting that any directional move might be put on hold for a while. A similar pattern of tightening in mid-2020 was followed by a significant surge in altcoins and the rally in early 2021.
Altcoin Rebound Tied to Key Signals and BTC Rotation
The coming weeks could prove pivotal. Analysts highlight several technical conditions that may confirm a market shift. These include a daily close above the descending channel, RSI crossing above 50, and an uptick in trading volume. Meeting all three conditions would provide stronger confirmation of a trend reversal.
Market analysts also point to the cyclical relationship between Bitcoin and altcoins. Historically, altcoins tend to rally 2–4 weeks after Bitcoin sets a new all-time high—a lag often referred to as “rotational lag.” If Bitcoin were to peak soon and consolidate, this could trigger capital rotation into altcoins, further supported by a drop in Bitcoin dominance below 61%.
To better navigate this potential shift, analysts recommend monitoring technical and sentiment indicators across individual altcoins. A sudden change in dominance for Bitcoin or a high volume in either direction could tell you to exit your altcoin open positions.
Altcoin Outlook Cautious as Market Awaits Bitcoin’s Next Move
While the TOTAL3/BTC chart points to a possible bottoming structure, confirmation is still pending. The market remains in a cautious state, with altcoin momentum heavily reliant on Bitcoin’s upcoming price movements and broader macro signals.
If Bitcoin records new highs and later stabilizes, traders may start investing in altcoins, indicating a new altcoin bull market might be starting. At the moment, people involved in trading and investing are monitoring market trends to see what the market will do next.
