The Altcoin market continues its downtrend compared to Bitcoin

Cryptocurrency analyst Daan Crypto Trades has provided an update warning about the state of the altcoin market, highlighting its ongoing underperformance compared to Bitcoin.

Based on the latest weekly chart of the TOTAL3/BTC ( market capitalization ratio of altcoin excluding ETH compared to Bitcoin), the vast altcoin sector is still trapped in a prolonged downtrend and shows little signs of reversal.

According to Daan, the market is currently approaching an important local support zone—a price level that has seen rebounds in the past. However, he expresses uncertainty about the necessary factors to stimulate a sustainable reversal, suggesting that only extreme macroeconomic conditions such as mass money printing, quantitative easing, or large-scale interest rate cuts could create a meaningful trend change.

"To be honest, I’m not sure what would be needed beyond mass money printing and significant interest rate cuts to reverse this trend in just a few short weeks," Daan shared.

He also advises altcoin investors to be cautious and have a strategy, emphasizing that indiscriminate exposure to underperforming tokens can lead to significant underperformance compared to Bitcoin. Although some altcoins may temporarily outperform, the current environment does not support the kind of widespread altcoin rallies seen in previous cycles, particularly in 2021.

"If this trend changes, you might take more risks and invest in altcoins like in 2021. However, in the current context, that is not the case," Daan added.

The accompanying chart shows a descending wedge pattern in the TOTAL3/BTC ratio, with the market testing the lower boundary near the historical support level. Until there is a clear breakout or macroeconomic conditions change, the outlook for altcoin compared to Bitcoin remains cautious.

Mr. Teacher