The altcoin market has endured prolonged volatility and intense selling pressure for months, leaving many investors questioning when the long-awaited altseason will finally arrive. Since early last year, major altcoins have seen sharp declines, with most trading well below their cycle highs. Despite temporary rallies, the broader sentiment has remained cautious as market participants await a stronger catalyst for sustained upside momentum.
Now, top analyst M-log1 has shared a technical view that could reshape expectations. He suggests that if Bitcoin is set to follow US stocks and break into new all-time highs in the coming days or weeks, altcoins may offer some of the best entry points seen in this cycle. Historical patterns show that Bitcoin strength often precedes aggressive moves in altcoins, particularly once BTC stabilizes at higher levels.
Since last December, the market has faced a relentless downtrend. Many altcoins have lost over 70% of their value, with investor confidence shaken and capital flight toward Bitcoin dominating sentiment. Ethereum has also struggled to find solid footing, failing to reclaim key levels and dragging the broader altcoin space with it. Despite brief moments of strength, the market has not shown a clear path toward sustained recovery.
M-log1 believes the current phase of liquidity sweeps and volatility is a necessary setup before a major move. Once these sweeps are complete, a powerful rotation into altcoins could begin. For seasoned investors watching historical cycles, such moments of extreme weakness often precede explosive rallies. With macro conditions, technical structure, and sentiment aligning, altcoins may be nearing a key inflection point. Traders are now positioning for a potential shift — one that could redefine this phase of the bull cycle.
The ETH/BTC weekly chart shows Ethereum trading at 0.02256 BTC, continuing a prolonged downtrend that began in early 2023. ETH has underperformed significantly against Bitcoin, highlighting a broader theme of weak altcoin dominance during this cycle. The chart reveals that Ethereum remains well below the 50-week, 100-week, and 200-week moving averages — all of which are sloping downward, reinforcing the long-term bearish structure.
While there has been a slight rebound in recent weeks, the price remains trapped in a tight consolidation range after a steep decline. Volume has also decreased, indicating indecision as traders wait for a clearer trend. If ETH fails to reclaim higher ground relative to BTC, it could delay the broader altcoin rotation investors have been anticipating.
However, this deep underperformance may offer asymmetric upside if sentiment shifts. Historically, ETH/BTC reversals have preceded strong altcoin rallies. If Ethereum can close above 0.025 BTC and flip the 50-week moving average into support, it would signal a potential reversal and broader strength in the altcoin market.
Featured image from Dall-E, chart from TradingView
