Altcoins may be entering a phase of early stabilization despite Bitcoin’s steep monthly decline, according to new market analysis from Bull Theory.
In an X post, the analyst highlighted that Bitcoin has dropped 24.15% in November, while the ALT/BTC ratio is up 9.44%, creating a divergence that rarely occurs during a BTC crash.
Bull Theory explained that this unusual split typically appears only after “altcoin seller exhaustion,” a point where heavy capitulation in alts occurs before Bitcoin completes its correction.
October’s charts captured a “complete washout” in the altcoin market, followed by a steady grind upward, even as BTC continued to fall.
This relative strength comes as Bitcoin approaches what could be a local bottom, supported by multiple extremely oversold readings. The daily RSI is at its lowest level in two years, the weekly RSI has returned to January 2023 levels, and the daily MACD is at its lowest level ever recorded.
If Bitcoin is indeed nearing stabilization, history shows two developments tend to follow: the asset shifts into a sideways consolidation or slow reversal, and altcoins begin outperforming in both BTC and USD pairs.
The analyst emphasized that the key is not a sudden bullish reversal from Bitcoin, but simply the end of continuous downside pressure. Even a flat BTC environment has previously triggered sharp moves in altcoins once leverage resets and forced selling disappear.
Bull Theory added that BTC’s dominance is struggling to trend higher, which is unusual during a Bitcoin-led market drawdown. Dominance weakness while BTC dumps indicates that liquidity is no longer flowing exclusively to Bitcoin but is instead circling into higher-beta assets.
The analyst stopped short of calling for an immediate altseason, but argued that the current setup mirrors the “phase right before altcoins begin outperforming.”
Source: https://zycrypto.com/analyst-altcoins-are-doing-something-they-never-do-during-a-bitcoin-crash/
