Following the heavy sell-off that has persisted since mid-January, the cryptocurrency market has been in a consolidation phase for about two weeks. The key question is whether a bottom is forming or this is merely a pause before another leg lower.
Analysts at Swissblock highlight the first positive signal: the Negative Alts Impulse has dropped to a multi-month low. Historically, such levels often coincide with a transition from intense selling pressure to an accumulation phase and a more stable market structure.
At the same time, Swissblock remains cautious. According to the analysts, only if the Positive Alts Impulse rises above the 25% threshold can a convincing upward move be expected.
In parallel, the Swissblock BTC–Altcoin cycle is approaching the so-called Altcoin Territory. Historically, this zone signals medium-term shifts in favor of altcoins.
An analysis by Alphractal confirms this shift. The Altcoin Season Index shows that 15 out of 55 tracked crypto assets have outperformed Bitcoin over the past 60 days. As a result, the Altcoin Season Index has exited the so-called Bitcoin Season Zone and entered an upward phase.
At the same time, CryptoRank warns against excessive optimism, pointing to the low quality of many recent rallies. February price spikes in UNI, ZRO, BERA, and H have completely faded.
According to CryptoRank, UNI’s rally was driven by news of BlackRock-related investments, ZRO reacted to the announcement of its own blockchain infrastructure, while BERA and H saw seemingly coordinated price surges ahead of token unlocks.
All gains generated during these moves have now been erased, and some assets are trading below their pre-pump levels.
As a result, the overall picture remains mixed. The market is showing early signs of capital rotation, but it remains fragile. A full and sustainable altcoin season is still some way off, yet investors should already be closely monitoring further developments to position themselves early.
