Altcoins Flashing 2019-Style Bottom Signal—Time to Buy? Van de Poppe Spots the Pattern
Bitcoin isn’t the only crypto making waves—altcoins are now mirroring a key reversal signal last seen during the 2019 market bottom. Trading veteran Michaël van de Poppe just flagged the similarity, sparking debate among traders about whether history’s about to repeat (or if this is just another ’dead cat bounce’ for bagholders).
Key indicators in play: The TOTAL3 chart—tracking altcoin market cap excluding BTC and ETH—shows a textbook retest of support levels that preceded the last cycle’s explosive rally. Van de Poppe notes the same ’washout’ sentiment where retail investors capitulate before institutions swoop in—assuming they can tear themselves away from their private equity spreadsheets long enough to notice.
Proceed with caution: While the technicals suggest upside potential, macro risks loom—including the Fed’s next rate decision and that pesky 40% of crypto trading volume that still comes from Tether. Nothing says ’healthy market’ like an ecosystem propped up by magic internet dollars.
Michaël van de Poppe reported that the altcoin market has displayed an important historical indicator through its massive upward movement compared to Bitcoin.
The #Altcoin market capitalization (OTHERS) against $BTC is currently providing a massive bullish divergence.
The last time this bullish divergence was provided, was the actual low on altcoins in ’19. pic.twitter.com/Vgh3jX16bF
The OTHERS data, which tracks altcoins except for Bitcoin and Ethereum, has started to show upward signals compared to Bitcoin’s dominance, says Van de Poppe. Historic patterns of this nature served as indicators of major market lows for altcoins before significant price upticks occurred.
A 2019-like Situation: A Key Turning Point?
The past instance of this sizeable bullish divergence took place in 2019 as the altcoin market entered its major bounce period after enduring an extensive bear market.
The 2019 divergence revealed traders had finished selling their positions, which initiated a several-month bullish run throughout multiple alternative coins. Data suggests that the current configuration might trigger another turning point similar to what occurred in 2019 across the entire altcoin marketplace.
Altcoin Market Sentiment at a Crossroads
Bitcoin keeps leading media coverage due to its recent $95,000 high, while altcoins remain behind due to poor momentum alongside restricted investor interest.
Sentiment shifts commonly start after bullish divergences appear. Investors who search for enhanced returns above Bitcoin are likely to trigger significant movement in the altcoin market.
Watch for Confirmation
At this moment, the divergence serves as a preliminary indication, but not as a sure indicator. Market participants will keep a close eye on three factors to validate this potential shift: increased altcoin market action, flourishing altcoin-to-Bitcoin exchange rates, and stronger trading volumes that indicate a trend change.
Market confirmation during the forthcoming months will be crucial for altcoins.
