Bitcoin pullback triggers heavy losses for alts, but multiple indicators suggest a possible rebound.

As the market is generally concerned that the altcoin season may come to an end, multiple technical indicators suggest that the current pullback is more likely a healthy stage adjustment.

As Bitcoin's price fell below the $110,000 mark, the entire cryptocurrency market suffered a heavy blow, with 75% of the losses coming from alts, and Ethereum's drop below $4,000 alone caused nearly 45% of the losses.

According to Vector's latest update, after Ethereum dominated the market for 79 days, the market cycle has begun to turn towards Bitcoin. The periodic rise of ETH lasted for 68 days, during which its price soared from $2,200 to a high of $4,900, after which the market cycle shifted back to Bitcoin.

Nevertheless, this rotation does not signify the end of the upward potential for alts. Analysis suggests that Bitcoin remains the key driver, and once it stabilizes and hits the bottom, alts may regain their upward momentum.

Technical analysis further supports an optimistic outlook. Analyst Moustache stated that despite short-term market fluctuations and the Bitcoin-dominated rotation distracting traders, most alts are forming a long-term technical pattern, namely the cup and handle structure, which is a typical bullish formation in technical analysis. This four-year bottoming process, although obscured by short-term volatility, may be building momentum for the next significant breakthrough.

Market data also shows that we are close to the historical bottom area. According to Swissblock's aggregated pulse indicator (which tracks the index price structure of the top 350 assets), currently 22% of alts are showing negative fluctuations, and the market is approaching the historical bottom range of 15-25%. This indicator has accurately marked the market bottom seven times since 2024, triggering Bitcoin to usually rise by 20-30%, while altcoins can increase by 50-150%.

In summary, market observers generally believe that the current risk-hedging signals are relatively stable and that there is no structural weakness in the market. For long-term investors, this pullback may provide a rare entry opportunity.

According to historical market patterns, after Bitcoin completes its adjustment, altcoins often show stronger resilience and upward potential. Only patient investors are likely to reap substantial returns during the market rotation.

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