Altcoins are showing signs of a possible trend reversal against Bitcoin, attracting the attention of traders. The falling wedge formation on the chart suggests a potential breakout after a long period of decline.
Altcoins Downtrend Since 2021
According to a TradingView chart shared by Elcrypto prof, the altcoin market has been in a consistent bearish trend since late 2021. On the 2-week timeframe, altcoin dominance has steadily declined against Bitcoin, forming a well-defined descending channel. The structure contains the price with near-perfect touches on both support and resistance lines.
Falling Wedge Structure Signals Potential Breakout
Recently, altcoin dominance hit the lower edge of its long-standing channel and bounced back with decent strength. This move lines up with a tightening wedge pattern—typically known for signaling a breakout after extended downtrends. A falling wedge appears when both highs and lows descend while gradually converging.
Readiness for Trend Change
Currently, the price stands at 0.13, with the latest candles showing increased buying activity. This move comes as altcoins begin testing the wedge’s upper boundary, putting bulls back in contention. If the breakout confirms, a trend reversal could drive a shift in altcoin dominance.
The situation in the altcoin market suggests signs of a possible trend reversal against Bitcoin, which may lead to new investment flows and increased interest from traders.
