Altcoin Market Signals Major Rotation as TOTAL3/BTC Nears Breakout

Altcoin momentum indicators are rising from oversold zones, suggesting a potential reversal in the long-standing TOTAL3/BTC downtrend.

The TOTAL3/BTC ratio nears a breakout from a multi-year falling wedge, signaling possible early rotation from Bitcoin into altcoins.

Smart money is quietly accumulating altcoins as historical convergence patterns and bullish structures hint at a coming altseason cycle.

According to analyst Stockmoney Lizardsltcoin, Altcoins may finally be on the verge of a comeback. After a long and brutal correction, the TOTAL3/BTC ratio—excluding ETH—now flashes early signs of a shift. This indicator tracks altcoin market cap relative to Bitcoin. It currently sits at 0.43, near the lower boundary of a multi-year downtrend channel that began in mid-2021. Moreover, multiple quality altcoin charts show recovery potential, with daily and weekly momentum rising from deeply oversold conditions. Traders should pay attention, as these signals often precede major rallies.

Source: StockMoney Lizards

Besides, the TOTAL3/BTC reveals a distinct pattern of cyclical behavior since 2018. A steep descending channel dominated the 2018–2020 bear cycle. In early 2021, a breakout from this structure sparked a sharp rally, pushing the ratio to a high of 1.3. That move confirmed altcoin dominance during that period. However, the market has since entered another prolonged downtrend, with the ratio falling from 0.55 to 0.43 during 2024–2025. This decline kept altcoins underperforming Bitcoin for nearly four years.

Strong Technical Signals Hint at Reversal

Currently, the ratio tests the lower edge of the descending channel once again. A bullish falling wedge pattern is forming—an indicator often associated with upcoming reversals. Additionally, the oscillator beneath displays rising multi-year support. It connects key lows from 2020 and 2023. Current readings hover just above this rising support, showing resilience despite continued pressure.

Moreover, momentum indicators show convergence between green and red lines near the 0.33 level. Historically, such convergence has preceded strong directional moves. The data also includes two purple ellipses, one marking the 2021 breakout zone, and the other forecasting a potential breakout into 2026.

Final Shakeouts Before the Run?

Futures markets remain highly volatile and prone to liquidations. Hence, seasoned traders are sticking to spot accumulation strategies. These conditions mirror past market bottoms, where price compression and fear create long-term opportunities. Consequently, smart money may already be rotating from Bitcoin into altcoins.

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