Bullish Momentum Builds for Altcoins, Signaling Major Reversal

In Brief

• Altcoin dominance shows multiple bullish reversal signals.
• Indicators include double bottom, RSI divergence, and MACD bull cross.
• If confirmed, altcoins could begin outperforming BTC and ETH.

Altcoin dominance may be flashing a major bullish reversal signal as multiple technical indicators align across higher timeframes. A prominent analyst has pointed to a double-bottom structure, RSI bullish divergence, and a MACD bull cross forming against Bitcoin (BTC) and Ethereum (ETH) dominance. If confirmed, the setup could mark the start of a new altcoin outperformance cycle.

Altcoin Dominance Shows Multi-Signal Reversal Setup

Indeed, altcoins may be approaching a structural turning point, according to a new chart analysis setting altcoin dominance against Bitcoin and Ethereum dominance on the monthly timeframe, shared by popular crypto market specialist Matthew Hyland on February 17.

The setup combines several classic reversal indicators rarely seen together in a single structure, including a double bottom formation, relative strength index (RSI) divergence, and improving momentum signals.

Together, these signals suggest that altcoins could be positioning for a broader trend shift after an extended period of underperformance.

*Altcoin dominance vs. BTC + ETH dominance. Source:* *Matthew Hyland/X*

The Technical Signals Traders Are Watching

The chart highlights an Adam and Eve-style double bottom forming on altcoin dominance, which is a pattern often associated with long-term reversals.

Supporting indicators include RSI bullish divergence (suggesting weakening downside momentum), RSI downtrend break indicating a potential shift in trend structure, moving average convergence divergence (MACD) bull cross historically linked to early-cycle recoveries, and improving monthly momentum readings.

In addition, analysts note that dominance is taking a shot at its highest monthly close since April 2025, which would be a key structural milestone if sustained.

What This Means For Crypto Traders

If the signals hold, the implications could extend across the broader market cycle. A sustained reversal in altcoin dominance would typically suggest altcoins outperforming BTC and ETH, expanding market breadth, rising speculative appetite, and stronger mid-cycle expansion dynamics.

Historically, altcoin dominance recoveries have coincided with periods of accelerated capital rotation into higher-risk assets.

The Bull Case: Broad Market Expansion

Hyland also argues that improving altcoin dominance doesn’t necessarily come at the expense of Bitcoin or Ethereum. Instead, the interpretation is that all major crypto assets could rise together, with altcoins simply gaining faster.

In that scenario, BTC and ETH trend higher, altcoins outperform on a relative basis, and the total crypto market cap expands significantly. This dynamic has been noted during previous expansion phases, particularly in the 2020-2021 cycle. In the analyst’s words:

“ETH and BTC will be much higher over the coming years (within 1-2 years). Therefore, crypto will be much, much higher within 1-2 years. It’s pretty straightforward; embrace the 2020 opportunity.”

Risk And Confirmation Levels

Despite the bullish signals, confirmation remains critical. Key factors traders will watch include a sustained monthly close above resistance, continued RSI strength, MACD momentum follow-through, and broader market liquidity trends.

Failure to hold the developing structure could invalidate the reversal thesis and reinforce continued dominance by BTC and ETH.

Meanwhile, Bitcoin was at press time trading at $67,997.80, down 0.5% on the day, losing 1.4% across the week, and dipping 28.5% over the past month, according to the most recent information.

*Bitcoin price 7-day chart. Source:* *CoinGecko*

Bottom Line

All things considered, altcoin dominance is showing a rare combination of bullish signals on the monthly chart, but confirmation is still pending. If the structure holds, it could market the early stages of a new altcoin outperformance cycle.

For traders, the coming monthly closes may define whether this is the start of expansion or another false breakout.