Two Charts Flashing Bullish Signals for Altcoins

Two Charts Flashing Bullish Signals for Altcoins

The crypto market has been turbulent lately, but two key charts are flashing signals that have me more excited than I’ve been in a long time. These indicators suggest that altcoins may be on the verge of a major breakout — despite the lingering fear in the market and the ever-present chatter about “Sell in September.”

Let’s break down the charts, the broader macro setup, and what to expect in the weeks ahead.

You’re Being Played! These 2 Flashing Signals Tell The Full Story About Altcoins

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The Market Backdrop: Fear, Greed, and Liquidity

Bitcoin is currently trading around $109,000, down from recent highs of $124,000. While this pullback might look concerning at first glance, it’s simply a retest of prior resistance levels — nothing unusual for a healthy bull market. Ethereum, meanwhile, surged to $4,900 before cooling to $4,440, and still looks bullish after recently setting new all-time highs.

Investor sentiment has swung toward fear, a classic signal that opportunity may be near. Warren Buffett’s timeless advice rings true here: “Be fearful when others are greedy, and greedy when others are fearful.”

Adding fuel to the fire: the Federal Reserve is hinting at rate cuts in mid-September. Lower interest rates inject liquidity into global markets, and historically, that liquidity flows directly into risk assets — especially crypto. Meanwhile, the USDT market cap has climbed vertically since January, a clear sign that money is flowing into the space.

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Chart 1: The “Others” Bitcoin Chart — A Bullish Divergence

The first chart worth highlighting is the “Others vs. Bitcoin” chart, which tracks the performance of altcoins outside the top 10 against Bitcoin.

• The pattern is a falling wedge, a classic bullish setup.

• The Relative Strength Index (RSI) is showing a clear bullish divergence: price has trended down, but momentum is turning upward.

This divergence has been building since April, suggesting that while altcoins have been under pressure, their momentum relative to Bitcoin is shifting. When this wedge breaks, history suggests the move will be explosive — potentially leading to sharp repricing of altcoins, with gains of 50%, 100%, or more unfolding very quickly.

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Chart 2: The “Others” Ethereum Chart — Record Oversold Levels

The second chart, “Others vs. Ethereum”, tells an equally compelling story. This compares altcoins outside the top 10 against Ethereum.

• The RSI here shows that the market is more oversold than ever before.

• Every prior time the chart reached oversold conditions, altcoins staged powerful rallies shortly after.

Ethereum has already had a strong run, and historically, this phase of the cycle sets the stage for smaller-cap altcoins to follow with outsized performance.

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Macro & Seasonal Factors: Is September a Threat?

There’s a well-known saying that September is historically red for Bitcoin. While that has often been true, the data tells a more nuanced story. In previous bull markets (2013, 2017, 2021), September did see pullbacks — but those dips were followed by massive Q4 rallies.

This year, we actually had a red August, breaking the usual “green August, red September” pattern. That invalidates the seasonal myth and suggests we may see different behavior this time around, especially with liquidity about to be unleashed.

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Why Patience and Positioning Matter

If history repeats, when these chart patterns break, the repricing will happen fast. Traders sitting on the sidelines waiting for “one more dip” risk missing the move entirely.

The signs are clear:

• Liquidity is flowing in.

• Bitcoin and Ethereum have paved the way.

• Altcoins are flashing bullish divergences and oversold signals.

The setup for altseason is here. Whether the breakout comes in September or early Q4, the window of opportunity is narrowing.

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Final Thoughts

These two charts — “Others vs. Bitcoin” and “Others vs. Ethereum” — are flashing some of the clearest bullish signals we’ve seen all year. When combined with the macro backdrop of impending rate cuts, rising liquidity, and historical bull market patterns, the case for a powerful altcoin rally is strong.

For investors, this means now is the time to prepare, not panic. As always, do your own research, manage risk carefully, and avoid overleveraging. The coming months may be volatile, but they could also deliver the kind of life-changing gains that only crypto can offer.