Bitcoin News Today: Altcoins Poised to Outperform Bitcoin as Fed Tightening Nears End

Alternative cryptocurrencies are poised to outperform Bitcoin as the Federal Reserve's tightening cycle nears its end, according to a recent analysis [1]. Technical indicators and macroeconomic expectations are aligning to support a potential shift in market dynamics, with altcoins expected to benefit from the anticipated easing of monetary policy [1].

The Others/BTC ratio, a key metric for tracking altcoin dominance, has revisited the critical 0.11 support level after a recent decline. Historically, this level has acted as a catalyst for short-term altcoin rallies, and the current price action suggests a possible reversal is on the horizon [1]. A sustained break above the 0.13–0.135 resistance range would serve as a strong confirmation of a trend shift, with previous recoveries reaching as high as 0.14–0.15 [1].

Bullish divergence on the RSI momentum indicator further reinforces the case for an altcoin rebound. The RSI has formed higher lows while prices have made lower lows, indicating a growing imbalance that often precedes a market turnaround [1]. This divergence has historically coincided with altcoin recoveries, particularly when the RSI crosses above the 40 level, which may now be a significant threshold [1].

Analysts like TedPillows argue that a September rate cut and the potential end of quantitative tightening (QT) could mark a turning point for altcoins. If the Fed pivots toward accommodative policy, increased liquidity is expected to flow into the market, potentially favoring altcoins over Bitcoin [1]. The technical and macroeconomic signals combined suggest that altcoins may begin to outperform in the coming months [1].

Despite the positive outlook, key resistance levels must be cleared to confirm the trend reversal. A break above 0.13–0.135 is essential, while a breakdown below 0.11 would undermine the bullish case [1]. Until then, the market remains in a watchful phase, with investors closely monitoring both price action and central bank signals [1].

The broader market has shown signs of stabilizing, with Bitcoin trading near $114,000 amid expectations of a Fed rate cut. However, the pace of Bitcoin’s growth has been described as gradual, which may create more favorable conditions for altcoins to capture market share as liquidity eases [1]. Investors are advised to remain cautious, as market conditions can shift rapidly with new economic data or policy announcements [1].

Source:

[1] The Risk Of Too Much Optimism - https://www.zerohedge.com/markets/risk-too-much-optimism