Altcoins Could Potentially Outperform Bitcoin Amid Fed Policy Shifts and Bullish RSI Signals

• Bullish RSI divergence at 43.28 forms as Others/BTC revisits the critical 0.11 support level, indicating a possible altcoin reversal.

• A decisive break above 0.13–0.135 resistance is essential to confirm a sustained trend shift favoring altcoins over Bitcoin.

• Analysts anticipate altcoin gains if the Fed ends QT and initiates rate cuts, potentially starting in September.

Altcoins poised to outperform Bitcoin as Fed signals rate cuts and bullish RSI divergence supports a trend shift. Stay informed with COINOTAG.

Fed Policy Shift and Its Impact on Altcoin Performance

The Federal Reserve’s recent affirmation to continue quantitative tightening (QT) triggered an immediate altcoin sell-off. However, market analysts, including TedPillows, suggest this QT phase may soon conclude. A potential rate cut in September could catalyze a shift, allowing altcoins to outperform Bitcoin. This outlook is reinforced by technical indicators in the Others/BTC ratio, signaling a possible market reversal.

Technical Indicators Signal Potential Altcoin Reversal

The Others/BTC ratio data from mid-2022 to mid-2025 reveals a bottoming pattern supported by bullish divergence in the Relative Strength Index (RSI). While price action shows repeated rebounds from historical lows, the RSI at 43.28 forms higher lows despite lower price lows. This divergence historically precedes altcoin rallies, suggesting momentum is shifting in favor of altcoins.

Historical Bottom Zones Revisited After Recent Decline

The Others/BTC ratio chart highlights two critical bottom zones near 0.12 and 0.11, which historically initiated short-term altcoin rallies. After a sharp decline, the ratio has returned to the 0.11 support level, followed by a rebound. This pattern suggests a revisit of a strong support zone that has previously led to relief rallies, reinforcing the possibility of an upcoming altcoin uptrend.

Although local tops have been followed by steep declines, the repeated approach to this support zone strengthens the case for a potential market reversal. This cyclical behavior aligns with earlier phases when altcoins gained momentum after touching key lows.

Why Breaking Key Resistance Levels Is Crucial for Trend Confirmation

Despite the recent bounce, the Others/BTC ratio remains below the critical resistance range of 0.13–0.135. A confirmed break above this zone is necessary to validate a sustained trend shift favoring altcoins. Previous rallies have pushed the ratio between 0.14 and 0.15, marking these levels as important targets. However, the bullish outlook depends on the 0.11 support holding firm; a breakdown below this would negate the recovery scenario.

The interplay of bullish RSI divergence, repeated testing of support zones, and anticipated Fed policy changes collectively underpin the forecast for altcoin outperformance in the near term.

Frequently Asked Questions

What is the significance of the Others/BTC ratio in crypto markets?

The Others/BTC ratio measures altcoin performance relative to Bitcoin. A rising ratio indicates altcoins gaining strength, while a falling ratio suggests Bitcoin dominance. It helps traders identify market trends and potential reversals.

Why is RSI divergence important for predicting altcoin trends?

RSI divergence occurs when momentum indicators move opposite to price trends, signaling potential reversals. In altcoins, bullish RSI divergence often precedes price recoveries and increased market dominance.

Key Takeaways

• Bullish RSI Divergence: Indicates growing momentum for altcoins despite recent price lows.
• Critical Support at 0.11: Historical bottom zone that has triggered previous altcoin rallies.
• Fed Policy Influence: Expected end of QT and rate cuts could drive altcoin gains over Bitcoin.

Conclusion

Altcoins are positioned for potential outperformance against Bitcoin as technical indicators like RSI divergence and key support levels align with anticipated Federal Reserve policy shifts. Maintaining the 0.11 support and breaking resistance above 0.13–0.135 are crucial for confirming this trend. Investors should monitor these factors closely for emerging opportunities in the crypto market.