Bitcoin News Today: Altcoins Defy Bitcoin's Downturn as Market Shifts Focus

Bitcoin's 14-day relative strength index (RSI) has fallen below 30, entering an oversold territory that historically has signaled potential rebounds in the cryptocurrency's price. The indicator, widely used by traders to gauge momentum, suggests that the recent sharp decline in BTC-down more than 24% in November-may be nearing a pause or reversal according to analysis. However, analysts caution that the RSI alone is not a definitive predictor of market direction.

The RSI's oversold reading indicates that the selling pressure has been intense enough to create a technical pause in the downtrend as data shows. In February 2025, a similar RSI dip below 30 coincided with a slowdown in BTC's decline, eventually leading to a bottom near $75,000 by early April. Traders are now monitoring whether history will repeat, with many emphasizing the need for price action confirmation. Patterns such as doji or candles with long lower wicks could validate the RSI signal and hint at easing selling pressure according to analysis.

Meanwhile, altcoins have shown unexpected resilience amid Bitcoin's selloff. The ALT/BTC ratio-a measure of altcoin strength relative to Bitcoin-has risen nearly 9.5% in November, defying the usual trend where altcoins underperform during BTC declines according to reports. Analyst Bull Theory attributes this divergence to altcoin seller exhaustion, as most holders have already liquidated positions, reducing downward pressure. This dynamic, combined with a shift in trading activity, suggests a potential market realignment.

CryptoQuant's Maartunn highlighted that 60% of Binance's trading volume now flows to altcoins, the highest level since early 2025 according to data. This shift reflects growing risk appetite among traders, who are increasingly allocating capital to alternative cryptocurrencies despite Bitcoin's struggles. The ALT/BTC ratio's upward trajectory and Binance's volume distribution align with patterns observed during past market transitions, signaling a possible shift in investor priorities according to analysis.

Bitcoin's technical indicators also point to extreme oversold conditions. The daily RSI has reached its lowest level in two years, while the weekly RSI mirrors levels seen in January 2023. The daily MACD has hit an all-time low, further reinforcing the idea that the current sell-off may be nearing its end according to technical analysis. Such metrics typically emerge when a downtrend is exhausting rather than accelerating, offering cautious optimism to traders.

The interplay between Bitcoin's RSI and altcoin performance highlights a broader market dynamic. While the RSI remains a self-fulfilling prophecy-its widespread use often amplifying its impact-the recent divergence in altcoin behavior suggests a potential inflection point according to market analysis. Traders are advised to watch for emerging support levels and candlestick confirmations, as these could validate the RSI's signal and set the stage for a rebound.