First Rotation Signals in Crypto Market: Altcoins Gaining Ground Against Bitcoin
After weeks of consolidation, market indicators are showing early signs of a possible shift in favor of altcoins, while the quality of many token rallies remains questionable.
Following the massive selloff since mid-January, the crypto market has been in a consolidation phase for two weeks. Analysts are debating whether this represents a bottom formation or merely a breather.
Swissblock reports an initial positive signal: The Negative Alts Impulse has fallen to a multi-month minimum – a level that historically has often marked the transition from selling pressure to accumulation. At the same time, the BTC-Altcoin cycle is approaching so-called altcoin territory, which suggests a medium-term shift in favor of altcoins [1].
An analysis by Alphractal confirms this trend: 15 out of 55 cryptocurrencies examined have outperformed Bitcoin over the past 60 days. The Alt-Season Index shows an upward trend and has exited the "Bitcoin-Season Zone" [1].
However, CryptoRank warns of a lack of quality in many recent price movements. The February rallies in UNI, ZRO, BERA, and H – triggered by investment news, blockchain announcements, or suspicious pumps ahead of token unlocks – have completely dissolved. Many assets are now trading lower than before the price increases [1].
The bottom line remains mixed: The market is sending early rotation signals, but continues to show fragility.
Sources
- [1]btc-echo.de
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