BTC Leads Recovery While Altcoin Indicators Hit Cycle Lows

Bitcoin's recent recovery above $71,000 signals bullish momentum, but altcoin performance remains muted, leading to questions about a potential 'altseason.' The TOTAL2 market cap (all assets excluding BTC) is testing crucial long-term support near its 200-week moving average around $900 billion, following a significant drawdown from its peak. Altcoin positioning metrics align with this weakness, with 36.8% of altcoins trading near historical lows, intensified by capital concentration in Bitcoin due to spot ETF inflows. Furthermore, the average altcoin trades 44.4% below its 200-day simple moving average, a level historically associated with bear-phase bottoms. For an altseason to begin, Ether (ETH) must show relative strength; the ETH/BTC pair needs to break out of its descending channel, ideally reclaiming 0.036 or 0.043. Until then, Bitcoin-led momentum dominates, and analysts suggest future altcoin rallies might concentrate capital in projects with strong adoption rather than lifting the entire market equally.

(Source：Cointelegraph)