The stability of market capitalization structure and the emergence of bullish reversal indicators create ideal conditions for liquidity rotation across the crypto landscape. The potential weakening of Bitcoin dominance further supports these conditions.

Both technical signals and market psychology suggest that a new Altseason cycle may be forming, setting the stage for the next major Altcoin market breakout.

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Market Recovery And the End of the Accumulation Phase

After months of correction, the global crypto market is showing clear signs of revival. According to CoinGecko, total market capitalization has reached USD 4 trillion again, marking a significant recovery following a prolonged period of stagnation. However, investor attention is no longer solely on Bitcoin (BTC). The spotlight is gradually shifting to altcoins, digital assets beyond Bitcoin, which are often considered the leverage for the next leg up of the market.

As analyst Michael van de Poppe highlighted, the altcoin market has endured the longest bear cycle, lasting nearly four years with persistent declines against Bitcoin. Yet, current technical indicators display striking similarities to late 2019 and early 2020, the period right before the market entered a strong uptrend. Specifically, MACD has formed a bullish divergence. While RSI is hovering in the oversold zone, it signals exhaustion of selling pressure and a potential reversal in sight.

On-chain data further reinforces this perspective. An analyst on X noted that the monthly market cap structure for altcoins remains intact, suggesting that the accumulation phase

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Author: Linh Bùi