Altcoin Shows Signs of Revival as Bitcoin Takes a Breather
The cryptocurrency market has slowed down recently after Bitcoin fell from its recent high of nearly $112,000 last Thursday and is now trading at $105,000. Many people in the crypto world had hoped that Bitcoin’s strong move would trigger gains across other coins — especially altcoins, which usually follow Bitcoin’s lead during a rally.
This time, however, things have played out a little differently.
When Bitcoin moves up quickly, it’s common to see other cryptocurrencies rise too. But right now, Bitcoin seems to be taking a break. Market analysts believe this could be a chance for altcoins to step up and shine.
Image 1: Altcoin season (Source: CoinMarketCap)
Technical Indicators Point to Possible Upturn
A crypto analyst, Niels has observed that the total value of coins—excluding both Bitcoin and Ethereum—is maintaining its position above a crucial upward trendline on the weekly chart. That stability is considered by many in the trading community as a healthy sign of underlying strength.
Niels also analysed the Moving Average Convergence Divergence (MACD) indicator. According to his assessment, the altcoin market experienced a bullish crossover on the MACD in early May, mirroring a similar event in November 2024. These crossovers in the past have often preceded price increases in the crypto sector.
He further studied the overall coin market without including the top two cryptocurrencies, showing that a falling wedge pattern had already played out in late 2024. Another similar wedge seems to be wrapping up now. The previous breakout saw altcoin value climb above a former resistance zone, which is now acting as support. Niels suggests that this setup might be laying the groundwork for another move upward.
The MACD indicator is showing the same pattern again, suggesting history may be repeating itself. Traders and investors who follow such signals often interpret them as early indicators of market movement.
Altcoin Investors Remain Cautiously Optimistic
While the technical picture is gaining attention, not all analysts are expecting an immediate boom in the altcoin market.
CryptoCon, a crypto commentator, acknowledged that Bitcoin has been following its expected cycle. However, he also pointed out that the delay in altcoin performance is testing the patience of investors. He believes the current phase is the longest stretch without a clear altcoin surge following a Bitcoin rally, and expects that the broader altcoin movement will still happen—just not right away.
Henry, another market analyst, has also been watching closely. He noted that the last time the altcoin sector showed a bullish MACD crossover, the market cap rose by almost 95 percent in a matter of weeks. A similar signal has appeared again on the charts. Based on previous cycles, he sees potential for another breakout, although timing remains uncertain.
Henry’s view includes a longer-term chart that tracks crypto assets excluding Bitcoin and Ethereum. His analysis shows a big spike in late 2022 followed by a sharp decline and then a drawn-out quiet period through most of 2023. This period of consolidation has allowed the market to stabilise, and some see it as a foundation for potential future gains.
Image 2: A pile of crypto coins (Source: Unsplash)
Altcoin Liquidations Reveal Market Pressure
On-chain data from CryptoQuant paints a different picture of how traders are positioned. Since Bitcoin ETFs received approval, Bitcoin has experienced significant short liquidations—nearly $190 million worth.
In contrast, altcoins have faced over $1 billion in long liquidations. This means a large number of traders were overly optimistic, expecting prices to rise. When those increases didn’t happen, they were forced to exit their trades at a loss.
The uneven pressure between Bitcoin and it shows how cautious the market has become. While Bitcoin has largely delivered gains for traders since the ETF launch, altcoin enthusiasts have had a tougher ride.
Despite this, many analysts believe the market is quietly preparing for a shift. The indicators are suggesting a potential breakout, and if conditions align, altcoins may soon start making meaningful gains.
Read Also: Analyst Predicts Bitcoin May Still Surge Past $300K This Cycle
For now, investors are watching closely, and while the market isn’t exploding with activity, the groundwork for an altcoin resurgence may already be in place.
