The cryptocurrency market could see a shift with altcoins positioned to potentially outperform Bitcoin, driven by expectations of Federal Reserve monetary policy changes and emerging bullish technical signals.
The primary catalyst stems from the Federal Reserve’s potential decision to cut interest rates as early as September. Such a move, anticipated by market participants, is seen creating favorable conditions for risk assets beyond the dominant Bitcoin.
Concurrently, technical analysis of the ‘Others/BTC’ ratio, a key indicator tracking altcoin performance relative to Bitcoin, reveals significant signs of potential strength reversal. The ratio shows a bottoming pattern accompanied by bullish Relative Strength Index (RSI) divergence.
Critical support levels for this ratio lie near 0.12 and 0.11. Market structure highlights the 0.13 to 0.135 range as a major resistance hurdle. Historical analysis underscores that maintaining support above 0.11 followed by a breakout above this 0.13-0.135 resistance zone is crucial for confirming a sustained altcoin recovery trend.
The convergence of this bullish technical setup with the projected shift in Federal Reserve policy forms a basis for the outlook that altcoin valuations could diverge positively against Bitcoin.