• Bitcoin’s sharp 24.15% decline in November pushed daily RSI to its lowest in two years and weekly RSI to January 2023 levels, signaling deep oversold conditions.

• The ALT/BTC ratio surged 9.44% from 0.1130 to 0.1277, highlighting altcoin strength despite Bitcoin’s weakness.

• Market data shows trader rotation into altcoins as dominance fails to rise, with seller exhaustion following October’s heavy selling, supported by leverage unwinding across pairs.

Discover Bitcoin’s extreme oversold signals and altcoin resilience in the latest crypto market rotation. Explore technical indicators, ALT/BTC trends, and liquidity shifts for informed trading insights today.

What Are the Key Indicators of Bitcoin’s Oversold Condition?

Bitcoin’s oversold condition is evident from a 24.15% price drop in November, falling from around $110,000 to $83,966, with technical indicators like the daily RSI reaching its lowest point in two years and the weekly RSI returning to levels seen in January 2023. The daily MACD has also recorded its deepest negative reading on record this month, reflecting sustained downward pressure without reversal patterns. These metrics, drawn from exchange data, underscore a deeply oversold market phase as price tests the $84,000 to $86,000 support zone.

Bitcoin hit extreme oversold levels while altcoins showed unusual resilience, signaling rare rotation and liquidity shifts.

How Has the ALT/BTC Ratio Performed Amid Bitcoin’s Decline?

The ALT/BTC ratio has defied Bitcoin’s weakness by climbing 9.44% in November, moving from 0.1130 to approximately 0.1277, as reported by analyst Bull Theory. This upward movement featured consistent green candles, forming higher highs and higher lows even as Bitcoin printed red candles and lower lows. Recent data indicates a mild pullback to around 0.122988, but the overall structure remains bullish for altcoins relative to Bitcoin.

Supporting this trend, October saw heavy selling in altcoins that exhausted sellers, leading to stabilization and a steady grind higher. Bull Theory highlights that such divergence is rare during Bitcoin corrections, pointing to internal market dynamics where liquidity shifts away from Bitcoin toward altcoin pairs. Exchange volumes confirm increased trading in higher-beta altcoins, with dominance metrics struggling to advance despite Bitcoin’s fall—dominance hovered without significant gains, aligning with rotation patterns observed in historical data from similar pressure periods.

Source: Bull Theory on X

These developments suggest traders are reallocating capital into altcoins for potential rebound plays, as leverage positions unwind across the broader digital asset market. Historical precedents, such as the 2022 bear market phases, show similar ALT/BTC strength preceding altcoin rallies, though current conditions emphasize caution due to ongoing global economic pressures.

Frequently Asked Questions

What Caused Bitcoin’s Recent 24% Plunge and Oversold Signals?

Bitcoin’s 24.15% decline in November stemmed from sustained selling pressure across major exchanges, driving the price from $110,000 to $83,966 without forming reversal patterns. Technical indicators like RSI and MACD hit extreme lows—daily RSI at a two-year bottom and weekly RSI matching January 2023 levels—indicating oversold conditions as support tests $84,000 to $86,000, per Bull Theory’s analysis of exchange data.

Why Are Altcoins Holding Strong Against Bitcoin Right Now?

Altcoins are demonstrating resilience through a 9.44% gain in the ALT/BTC ratio, climbing to 0.1277 amid Bitcoin’s drop, because traders are rotating liquidity into higher-beta assets as leverage clears and seller exhaustion sets in after October’s washout. This natural divergence, as noted by Bull Theory, reflects internal shifts where altcoin pairs see buying interest despite broader market weakness, creating opportunities for relative strength in voice-searched crypto trends.

Key Takeaways

• Extreme Oversold for Bitcoin: RSI and MACD at multi-year lows signal potential exhaustion, with price near $84,000 support—watch for reversal confirmation.
• Altcoin Resilience via ALT/BTC: A 9.5% ratio increase shows liquidity flowing into altcoins, forming higher highs despite Bitcoin’s red candles.
• Liquidity Rotation Insight: Traders should monitor dominance stagnation and leverage unwinds for entry points into higher-beta assets during corrections.

Conclusion

In summary, Bitcoin’s oversold levels marked by record-low RSI and MACD readings during its 24% November plunge contrast sharply with altcoin resilience, as the ALT/BTC ratio’s 9.44% gain highlights key liquidity rotations in the crypto market. Analyst Bull Theory’s observations from exchange data and technical patterns emphasize seller exhaustion and trader shifts toward higher-beta opportunities. As markets stabilize near critical supports, investors can anticipate potential rebounds, staying informed on these dynamics to navigate future volatility effectively.

Bitcoin Drop Exposes Extreme Technical Readings

Bitcoin experienced a steep 24.15% decline throughout November, following weeks of aggressive downward momentum. The cryptocurrency’s price retreated from highs near $110,000 to settle around $83,966, dominated by consecutive red candles that established repeated lower lows. This correction unfolded across global exchanges, draining liquidity and intensifying selling control without any clear signs of reversal.

Technical analysis reveals unprecedented oversold territory. The daily Relative Strength Index (RSI) plummeted to its lowest level in two years, while the weekly RSI reverted to readings last observed in January 2023. Compounding this, the Moving Average Convergence Divergence (MACD) on the daily chart registered its most negative value ever recorded this month. These indicators collectively paint a picture of extreme market fatigue, based on verifiable data from trading platforms.

As Bitcoin nears the $84,000 to $86,000 support band, these metrics suggest the asset is deeply oversold. No bullish patterns have emerged to counter the trend, reinforcing the notion of prolonged pressure unless external catalysts intervene. Market participants, drawing from historical oversold recoveries like those in mid-2023, remain vigilant for volume spikes that could signal a bottom.

ALT/BTC Ratio Defies Bitcoin Weakness

Contrasting Bitcoin’s downturn, the OTHERS/BTC ratio—representing altcoins against Bitcoin—exhibited robust performance, as detailed by Bull Theory. Over November, this ratio advanced by 9.44%, transitioning from 0.1130 to approximately 0.1277. The chart displayed several pronounced green candles, underscoring persistent buying interest in altcoin pairs even as Bitcoin faltered.

Although a slight cooling has occurred, with the ratio dipping to 0.122988 in recent sessions, the broader pattern upholds a bullish framework of higher highs and higher lows. This resilience marks a notable divergence, where altcoins maintain relative strength amid Bitcoin’s correction. Prior to this, October’s data indicated widespread altcoin liquidation, but subsequent stabilization paved the way for the current upward trajectory.

The implications are significant for portfolio strategies. In periods of Bitcoin dominance erosion, such ratio gains often precede broader altcoin rallies, as observed in past cycles. Traders leveraging this insight can position accordingly, focusing on pairs showing similar green momentum while Bitcoin consolidates.

Indicators Align With Rotation Patterns

Bull Theory points out that this ALT/BTC strength during a Bitcoin crash is an uncommon occurrence, typically signaling deeper liquidity reallocations within the ecosystem. As Bitcoin’s price falls, capital appears to migrate toward higher-beta altcoins, coinciding with the unwinding of leveraged positions across various digital asset markets. This rotation helps explain the failure of Bitcoin dominance to surge despite the sell-off.

Further evidence lies in altcoin pair exhaustion post-October’s heavy volume dumps. With sellers depleted, buying resumes selectively, fostering resilience. Bitcoin’s chart, meanwhile, lingers near support levels, while the altcoin index relative to BTC builds steadily. This synchronized behavior—oversold Bitcoin paired with strengthening altcoins—mirrors rare historical setups, such as those in early 2023, where rotations preceded market-wide recoveries.

Dominance metrics provide additional context: they have remained subdued, unable to capitalize on Bitcoin’s weakness, which aligns with increased altcoin trading volumes. Expert analysis from Bull Theory underscores that these patterns reflect adaptive trader behavior under pressure, offering clues for anticipating shifts in market leadership. Overall, the data supports a narrative of internal reconfiguration rather than outright capitulation, with potential for altcoins to lead any near-term upswing.