Bitcoin held firm at $65,000 this week, giving the altcoin market a chance to catch its breath. This stability helped reset the Alts Impulse signal from negative to neutral, hinting at a possible short-term altcoin recovery if momentum continues upward. Swissblock notes that a decisive shift to a “positive” impulse could act as a clear signal for a rally in altcoins.
The Alts Impulse signal had turned negative in February, following Bitcoin’s dip below $60,000, which dragged the broader market down. But recent stabilization suggests relief may be near, offering a window for altcoins to regain some ground.
Stablecoin inflows further support this possibility. Exchange inflows, which measure buying power in the market, climbed steadily through January, reaching $4 billion in February. While there has been a slight pullback from $4.3 billion to $3.7 billion since 10 February, the decrease is modest compared to the earlier rebound. This continued presence of capital could help fuel a potential altcoin bounce, although a prolonged dip would risk keeping the market fragile.
Ethereum’s performance versus Bitcoin also signals opportunity. The ETH/BTC ratio rose by 3.5% in the past few days, showing Ethereum outpacing Bitcoin — a trend historically associated with altcoin surges. If the ratio pushes higher from its February range, it could signal a stronger altcoin season on the horizon.
Individual coins are already showing signs of life. Zcash [ZEC] surged 24% over the past 24 hours, leading the recent rally. Hedera Hashgraph [HBAR] and Bitcoin Cash [BCH] both jumped 10%, while Solana [SOL] gained 8%, and Ethereum reclaimed $2,000 with a 6% rise.
Yet, risks remain. Glassnode reports increased hedging against a Bitcoin decline, with bearish positions up nearly 12% over the past month. Any drop in BTC could quickly pull altcoins lower, undermining the fledgling recovery.
For now, the altcoin market sits in a neutral zone, offering cautious optimism. A short-term rally is possible, but it hinges on sustained capital inflows and Bitcoin holding above critical levels. Traders and investors will be watching both signals closely, ready to respond to the next move in the market.
