Market analysis indicates a technical signal suggesting a potential shift towards ‘altseason’ following a confirmed breakdown in the Bitcoin-to-Ethereum pair (BTC/ETH).
The breakdown in the BTC/ETH pairing, supported by the Relative Strength Index (RSI), historically points to the beginning phases of a broader altcoin rally. RSI, a measure of momentum indicating overbought or oversold conditions, provides technical confirmation of this key market signal.
Market analyst CrypFlow observes that previous instances of such breakdowns, like in 2019, saw significant altcoin rallies subsequently take place. Conversely, periods where Bitcoin dominance increased often correlated with altcoin underperformance.
Analysts note that altseason rotations typically unfold in a pattern: initial strength in Bitcoin dominance transitions to Ethereum, followed by subsequent waves involving large-market-cap and eventually smaller-market-cap alternative cryptocurrencies.
The BTC/ETH pairing serves as a barometer for the relative strength between the two largest cryptocurrencies. RSI confirmation on this breakdown provides analysts with increased confidence in the potential for an impending market shift towards Ethereum and alternative assets.