The altcoin market is bottoming out - Is it ready to bounce back?

After a long period of stagnation, the altcoin market may finally be showing signs of a bounce back, at least according to renowned analyst Michael van de Poppe. Recent technical indicators suggest that the altcoin market may have bottomed out and is at a point ready for a strong recovery in the near future.

Signs of bounce back

Van de Poppe emphasized that there are several macro factors that could stimulate the bounce back of altcoin. Among them, the weakening of gold prices along with the potential for changes in macroeconomic policy — particularly future interest rate cuts — could create a new wave of liquidity into risk assets such as altcoin. These factors, according to him, could be the foundation for a strong transformation of the altcoin market.

In addition, he pointed out the bullish divergence on the OTHERS/BTC chart, a technical signal that often precedes significant price increases of altcoin. This suggests that the market may be in a phase of preparation for a new "race" of smaller coins.

"The market is bottoming out," van de Poppe shared, while emphasizing that the current technical patterns are very similar to those seen at the lows in previous cycles. This creates the expectation that a significant bounce back may be waiting ahead.

Be cautious with Bitcoin

However, not everyone fully believes in this bounce back. Analyst Tony Severino is cautious, pointing out that Bitcoin's dominance in the crypto market has recently increased to 65.66%. This reflects Bitcoin's superiority over other altcoins. Bitcoin's RSI remains strong, indicating that BTC is still leading and showing no signs of weakening.

Severino also pointed out that the altcoin season index is currently low, only reaching 22 points. This reinforces the observation that altcoins have not yet been able to bounce back strongly compared to Bitcoin, and the market has not yet witnessed a real transfer from Bitcoin to altcoins.

Although the altcoin market may be approaching a turning point, Bitcoin's continued dominance in the market is a major hindrance to the bounce back of smaller coins. Currently, traders and analysts are closely monitoring the situation to see if this trend will change in the near future.

With the strong volatility of the cryptocurrency market, any changes in macro factors or signals from Bitcoin can be decisive in the bounce back or continued stagnation of the altcoin market.

Altcoin may be on the verge of a bounce back, but there are still many factors to consider. The market will need additional strong signals from macroeconomic factors, as well as changes in Bitcoin's trend, to confirm that this recovery is sustainable and can occur broadly across the entire crypto market.

Annie