After more than 12 months of downward pressure and collapsing sentiment, the internal structure of the crypto market is finally starting to shift. While Bitcoin remains the primary focus for many, the real story is hidden in the Others Dominance chart, which tracks the performance of altcoins relative to $BTC $USDC
The Bullish Divergence
Others dominance has already reclaimed levels seen before the October crash. Interestingly, while Bitcoin is still trading roughly 42% below its previous highs, many altcoins are stabilizing and gaining relative strength. This divergence is a classic signal of seller exhaustion. If the market were still in a distribution phase, dominance would continue to fall, but instead, it has risen 17% in just the last two months.
Key Catalysts for an Altcoin Move:
Technical Crossover: The RSI on Others dominance has crossed above its moving average for the first time since July 2023. Historically, this crossover precedes significant strength phases.
Liquidity Rotation: The ISM index has climbed to 52, the highest in 40 months. Historically, a move above 55 aligns with strong performance in high-beta assets like alts.
Macro Environment: Core inflation recently hit a 5-year low, increasing the odds of more Fed easing. As gold and silver rallies cool down, capital typically rotates into riskier assets like crypto.
Current Market Positioning:
Structurally, the market has undergone a massive reset. Leverage has been flushed, sentiment is near cycle lows, and most altcoins are still down 80–90% from their peaks. This means the downside risk is significantly reduced compared to the potential upside.
While a mid-term election year can sometimes lead to sideways movement, the long-term bottom for many projects seems to be in. I am particularly watching the @vanar ecosystem, as $VANRY is perfectly positioned to benefit from this upcoming liquidity rotation.
Stay disciplined and keep a close eye on the dominance levels!
#AltcoinSeason #CryptoAnalysis #MarketUpdate dingStrategy #BinanceSquare
