Since 2022, altcoins outside the top 10 have been underperforming Bitcoin — lower highs, lower lows. This downtrend, forming a classic falling wedge, is now showing signs of a breakout.
Why This Matters:
Breakouts in relative performance don’t happen from hype. They happen when market positioning is exhausted. Fear & Greed is at multi-year lows, and most portfolios are deep in drawdowns. Once pain becomes normal, investors stop protecting and start seeking asymmetric opportunities.
Historically, major alt trends begin when confidence is low, narratives are dead, and valuations are compressed after long periods of underperformance — exactly the environment we are in today.
The Setup:
Bitcoin dominance absorbed capital for years, draining liquidity from altcoins.
Valuations compressed hard outside the top 10.
Builders kept developing while prices were ignored.
Now the market is shifting:
Multi-year downtrend vs Bitcoin broken ✅
Sentiment at extreme fear 😱
Positioning washed out 💧
Relative valuations stretched 📊
This phase isn’t altseason… yet. But it’s when the market stops punishing risk and starts rewarding selective risk. Strong altcoins don’t need mania; they just need capital to stop fleeing. When expectations are dead, it takes less capital to move prices. Rotation starts when traders are exhausted — and that’s when the best risk-to-reward setups appear.
#MarketRally #altcoins