Altcoins have begun the new calendar year with modest gains, and one widely followed market analyst suggests the move could mark the start of a stronger advance over the next few months.
The broader cryptocurrency market, particularly altcoins, has been under sustained pressure since the October 10 flash crash. Now, some technical signals are hinting that a trend reversal may be forming.
Analyst Sees Altcoins Poised for Recovery
Michael van de Poppe, a crypto analyst with more than 815,000 followers on X, expects a potential recovery led by altcoins as the market moves on from what he describes as a bearish 2025.
“Many altcoins have been correcting all the way down to their wick of the 10th of October. Finally, things start to turn upwards. The same can be said for LINK, which is currently breaking the 21-Day MA for the first time since the Summer. This would imply that the markets are ready for an upward run coming 2-3 months.”
Van de Poppe pointed to Chainlink (LINK), a major altcoin with a market valuation of around $9.2 billion, as an example of improving technical momentum. LINK has moved above its 21-day moving average for the first time since the summer, a level the analyst views as a potential signal of renewed strength.
Short-term moving averages for LINK are trending higher, and similar patterns are reportedly appearing across several other altcoins. According to historical data from previous market cycles, comparable breaks above key moving averages have often preceded 20%–50% rallies in altcoins over a 2–3 month period, assuming Bitcoin can stabilize above $90,000, as seen during the post-halving uptrend in the fourth quarter of 2024.
Bitcoin’s Role in the Outlook for 2026
Altcoins are seeking a stronger start to 2026, but analysts note that bullish momentum will need to overcome the lingering effects of the past year’s weakness.
One X user responding to Van de Poppe’s outlook argued that altcoin strength still depends heavily on Bitcoin’s next move:
“As long as Bitcoin is ranging, any altcoin strength stays fragile. Sustainable alt moves need a Bitcoin breakout first.”
The “ranging” refers to Bitcoin trading in a relatively tight band, reflecting ongoing uncertainty among bullish traders. The market has been under pressure and effectively squeezed for much of the past three months.
Analysts suggest that a decisive move higher from Bitcoin would likely be required to unlock a broader altcoin rally. A strong push toward $100,000 is seen as the kind of breakout that could meaningfully open up the altcoin market in the near term.