After more than 12 months of sustained downside, collapsing sentiment, and structurally broken charts, recent data suggests the relative structure beneath the altcoin market may be shifting.
According to a recent report, the Others Dominance chart, which tracks how altcoins perform relative to Bitcoin, is beginning to display early recovery signals.
Others dominance has already reclaimed the levels observed prior to the October 10 crash, which liquidated $19.3 billion. However, Bitcoin remains approximately 42% below its highs from that same period.
Source: https://x.com/BullTheoryio/status/2022716372179144811
This divergence is notable. While Bitcoin continues to trade below prior structural levels, altcoins are stabilizing on a relative basis and beginning to regain strength versus BTC.
Historically, when altcoins remain in heavy distribution, dominance continues to decline. That is not the case now. Instead, Others dominance has risen roughly 17% over the past two months, suggesting the forced selling phase may be nearing exhaustion.
A similar structural setup occurred in 2019–2020. After quantitative easing ended, Bitcoin continued correcting for several months. However, Others dominance bottomed and never revisited those lows, not even during the March 2020 market shock.
That period marked the foundation for a multi-year altcoin uptrend.
While historical patterns do not guarantee repetition, the current relative strength behavior mirrors early-cycle stabilization rather than continued breakdown.
Several broader signals are aligning with this shift:
From a structural standpoint, the market appears reset. Most altcoins remain down 80–90% from cycle highs, leverage has been flushed, positioning is light, and sentiment remains near multi-year lows.
However, midterm election years have historically introduced volatility and occasional weakness in crypto markets. A scenario of sideways accumulation through Q3 or Q4 before a decisive reversal cannot be ruled out.
For now, the key observation is relative strength. While Bitcoin’s structure remains cautious, altcoins are no longer deteriorating versus BTC, and that shift often marks the early stage of broader rotation rather than its conclusion.
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