Altcoin strength in BTC pairs indicates liquidity is rotating toward higher-beta assets.
Altcoins are showing unexpected resilience as Bitcoin suffers a sharp decline this month.
Data from Bull Theory shows the ALT/BTC ratio rising 9.44% despite Bitcoin falling 24.15% in November. Technical indicators suggest Bitcoin may be approaching a local bottom, with daily and weekly RSI at multi-year lows.
This combination points to potential liquidity rotation toward altcoins as seller pressure eases.
Altcoins have resisted further decline while Bitcoin continues to fall. This pattern is unusual during sustained BTC drops.
According to Bull Theory, the ALT/BTC ratio has quietly climbed even as Bitcoin remains under pressure. The last major divergence occurred months ago.
Historical trends show this rise often reflects altcoin seller exhaustion. Heavy selling in October left altcoins primed for stabilization.
Even as BTC trades lower, altcoins are gradually gaining upward momentum. This indicates early rotation of liquidity into higher-beta crypto assets.
BTC technical metrics reinforce the possibility of a bottom forming. Daily RSI is at its lowest level in two years, signaling oversold conditions.
Weekly RSI has returned to levels last seen in January 2023, while daily MACD is at an all-time low. These indicators suggest a potential pause in Bitcoin’s correction.
Market dynamics typically show altcoins outperforming once Bitcoin stabilizes. Both BTC pairs and USD-denominated altcoins tend to rebound first.
Altcoins breaking from their recent base could trigger stronger market reactions. Positioning resets and leverage adjustments historically amplify such moves.
Bitcoin dominance appears heavy and struggles to trend higher. Despite BTC’s decline, altcoins quietly build strength in BTC pairs.
This trend signals potential liquidity rotation toward altcoins. Market behavior suggests the phase just before outperformance begins.
Altcoins’ upward movement coincides with BTC approaching major support levels. Oversold indicators may prompt a sideways or slow reversal phase.
Data highlights that seller exhaustion in altcoins often precedes broader market stability. Bull Theory’s charts show consistent recovery even during BTC weakness.
Liquidity shifts historically drive rapid altcoin gains once BTC stops falling. Reduced selling pressure allows higher-beta assets to capture renewed interest.
Market participants should note the subtle divergence in ratios. ALT/BTC strength during a BTC dump is a recognized signal of rotation.
Oversold BTC metrics combined with altcoin resilience create a notable market setup. This alignment rarely occurs outside pre-outperformance phases.
Charts show a clear pattern: altcoins stabilize while BTC struggles. Historical behavior suggests this setup could precede renewed altcoin activity.
