- Altcoin lows shrink as buyers return to the market
- RSI divergence hints at fading Bitcoin dominance
- ETF filings and rate cut hopes boost altcoin trend
The cryptocurrency market is showing renewed momentum, with altcoins beginning a fresh wave of growth. Bitcoin maintains price strength, but divergence signals and technical patterns suggest that a breakout in altcoins may now be underway. Several key metrics and macroeconomic changes point to the start of another altcoin cycle.
Divergence Patterns Indicate Growing Altcoin Momentum
According to analysis prepared by Jamie Coutts, Chief Crypto Analyst at Realvision, the altcoin market cap hit a low in April 2025, but fewer tokens recorded new 365-day lows. This change is viewed as an early signal of exhaustion in downward momentum. Data showed that despite the dip in total value, only a small number of altcoins dropped to yearly lows, compared to past market phases.
This development has previously preceded recoveries in altcoin prices. Coutts stated, “Divergence shows downside momentum was exhausted.” Analysts view this as a potential shift from panic selling to accumulation, with buyers slowly re-entering the market as conditions stabilize.
Additionally, a bearish divergence on the Bitcoin Dominance chart, spotted by Merlijn The Trader, may support this shift. While Bitcoin dominance reached higher highs, the RSI formed lower highs. This divergence often signals weakening Bitcoin dominance, possibly giving altcoins more market share.
Macro Trends and ETFs Add Fuel to Altcoin Recovery
According to an observation by ASH Crypto on X, macro conditions support further altcoin growth. The altcoin market cap is bouncing from $835 billion support, which was the base of previous rallies in March and November 2024. This movement aligns with earlier setups before past altcoin waves.
Contributing factors include a three-month pause on tariffs, easing quantitative tightening, and expectations of rate cuts. These conditions are often favorable for digital assets. In addition, several new altcoin ETFs have been filed, and growing interest from institutions is contributing to increasing capital inflows.
Crypto analysts suggest that the pattern resembles previous bull runs, with smaller-cap tokens leading the current bounce. If these trends continue, Q2 2025 could mark the beginning of a wider altcoin rally.
