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After months of stagnation and bearish sentiment, a significant bullish signal has appeared on the altcoin charts, suggesting a potential resurgence in the market. Renowned crypto analyst Michaël van de Poppe has highlighted a massive bullish divergence in the altcoin market capitalization relative to Bitcoin (TOTAL3/BTC), indicating a possible reversal in trend.

The Bullish Divergence: A Historical Perspective

Van de Poppe identified a multi-year falling wedge pattern—a structure often signaling a bullish price reversal. The last time such a bullish divergence occurred was in 2020, which was followed by a parabolic surge marking the beginning of one of the most significant altcoin bull runs.

He emphasized that the current market features the longest bullish divergence in altcoin history, with the Relative Strength Index (RSI) consistently forming higher lows while prices made lower lows—a classic setup hinting at a price reversal.

Importantly, a breakout has already taken place, with prices reclaiming the wedge resistance and retesting it as support. This retest appears to be holding, which Van de Poppe argues could confirm a new uptrend in the altcoin market .

Analyzing the Altcoin Market Capitalization

The TOTAL2 chart, representing the total crypto market capitalization excluding Bitcoin, shows that as of April 14, it has bounced from the $830 billion zone and is now hovering near the $960 billion mark. This movement indicates signs of life after weeks of sideways action.

The price action has reclaimed the 0.382 Fibonacci retracement level and is attempting to push above the key 0.5 and 0.618 levels—commonly watched for trend reversals.

Additionally, the Moving Average Convergence Divergence (MACD) has crossed bullish, with histogram bars turning green and momentum shifting upward. This suggests a potential continuation if follow-through volume enters the market.

Potential Scenarios Ahead

If the TOTAL2 market cap can decisively break and hold above the $1.02 trillion mark (0.618 Fibonacci level), analysts see potential for a rally toward $1.27 trillion (the 1.618 Fibonacci extension). This scenario becomes more likely if Bitcoin’s price stabilizes or consolidates.

In a bullish case, TOTAL2 could retest all-time highs near $1.6–2 trillion in the next 6–12 months. Conversely, a bearish scenario would involve another rejection at the 0.618 Fibonacci level, sending prices back toward the $830 billion support.

Conclusion

The emergence of this bullish divergence in the altcoin market capitalization, coupled with supportive technical indicators, suggests that the altcoin market may be on the cusp of a significant uptrend. Investors and traders should monitor these developments closely, as they could signal the beginning of a new altseason.

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James Frost

I trade cryptocurrencies based on fundamentals, TA and indicators. It started as a hobby, then part time and currently full time for more than 2 years. This kind of trading and analysis is endless daily work. This means throwing all previous analyzes in the trash and starting day-to-day again. My previous experiences: CryptoSvet.cz