Altcoins Hit Rock Bottom as Crypto Market Bleeds – Rally Next?

Crypto assets have responded differently to the downturn that has held for so long, but not much has been said about altcoins as a group. As expected, they have hit rock bottom since the market failed to reverse the bearish trend, but this may also bring some good news.

Data shared by an analyst shows that the Relative Strength Index (RSI) of altcoins in general has dropped to an all-time low, something analysts describe as “brutal”. Investors have long anticipated an altcoin rally, but with the downward trend overwhelming the bulls, no such rally has happened yet.

Altcoin Could Lead to Rally

Altcoin season is a window period during which altcoins outperform Bitcoin to reach astronomical highs. This has been anticipated since the beginning of 2025, but has not yet happened despite Bitcoin reaching a new all-time high in October. The current low altcoin RSI may however be whispering some hope.

Low RSIs have historically marked bottoms and have become the starting point for crypto rallies. Some analysts believe the altcoin dominance at an all-time low coincides with the beginning of a potential altcoin rally. Bitcoinsensus says an altcoin season signal has just shown up, as Bitcoin Dominance broke down from a major resistance. 

They expect a sharp drop in the dominance of Bitcoin over altcoins to 40-42% in the near term, which would potentially trigger an altcoin rally. If this plays out, an altcoin rally may indeed be close, and altcoin investors are about to smile again after months of bearish control.

However, the current weakness has also been seen in Bitcoin, which makes the situation a bit more complicated than just for altcoins. Some analysts have in fact said the systematic 4-year cycle in crypto is dead, in which case there’s no legitimate ground to expect an altcoin rally, at least not in the short term.

Will Bitcoin Give Way for an Altcoin Rally?

Apart from the general weakness seen in the crypto market, Bitcoin, which is suffering the same fate, may be a hindrance to an altcoin rally. This is because it has not yet completed its rally, which some analysts believe should reach another new all-time high before altcoins take over. 

The coin has repeatedly failed to break out of the range it has been trading in, and failed to reclaim a key support yesterday. Experts believe it may take months for the upward momentum to be recovered, which will potentially delay altcoins as well.

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