2026 Set as Crypto Reset Year: 3 Bullish Signs for Altcoins

  • CryptoBullet forecasts 2026 as a “reset year,” not a peak cycle, paving the way for a larger 2027–2029 bull run.
  • The $OTHERSBTC chart shows bullish divergence and strong channel support, implying altcoins may avoid the 2018-style collapse.
  • End of the Fed’s Quantitative Tightening could stabilize liquidity, helping alts outperform Bitcoin in mid-cycle conditions.

The crypto analyst CryptoBullet shared insights into the cryptocurrency market’s trajectory for 2026, labeling it a “reset year” rather than the explosive bull market some enthusiasts anticipate. Dismissing lofty price targets like $150,000-$250,000 for Bitcoin (BTC) or Ethereum (ETH) price discovery this year, he emphasized that the real surge is likely deferred to 2027-2029.

Central to his analysis is the $OTHERSBTC chart, which tracks the ratio of the total market capitalization of cryptocurrencies excluding the top 10 (often referred to as “altcoins”) against Bitcoin on a monthly timeframe. The chart reveals a descending channel with key support levels holding firm. Labeled points (a), (b), and (c) highlight potential reversal zones, with a higher low (HL) formation indicating reduced downside momentum. A projected “Target 1” suggests an upside breakout could push the ratio toward 0.35-0.5, implying altcoins might gain ground relative to BTC.

Technical Signals Show Bullish Divergence Forming

Below the main chart, a volume and divergence indicator underscores bullish signals. Despite recent declines, a “bull div” (bullish divergence) on the indicator contrasts with a potential “bull trap,” but overall, it points to underlying strength. CryptoBullet argues this setup means 2026 won’t mirror the brutal altcoin capitulations of 2018 or 2022, where alts plummeted over 90% against BTC.

A key factor he highlights in replies is the recent end of Quantitative Tightening (QT) by the Federal Reserve, which concluded about a month ago in December 2025. Historically, QT drained liquidity from risk assets, exacerbating altcoin weakness. With QT over, liquidity could stabilize, preventing synchronized drops between BTC and alts. If BTC corrects to around $50,000 as CryptoBullet has suggested in prior analyses, alts might not suffer proportionally, potentially rallying 100-200% from current levels before any deeper pullback.

Bitcoin, Ethereum, and Macro Trends Support Consolidation

This perspective aligns with broader market sentiment amid neutral macro conditions. Bitcoin hovers around $91,000, down modestly, while ETH trades near $3,150. Gold and silver’s recent gains signal hedging without panic, supporting a consolidation narrative.

For investors, this implies a strategic pivot: focus on high-conviction altcoins with strong fundamentals, as rotation from BTC dominance (currently around 55%) could accelerate mid-year if economic data like upcoming CPI and NFP reports favor rate cuts. However, risks remain—geopolitical tensions or regulatory shifts could extend the reset.

CryptoBullet’s chart-driven thesis offers a sobering yet optimistic view: 2026 as a bridge to unprecedented growth, where patience in altcoins could pay off handsomely. As always, traders should conduct their own research and manage risks accordingly.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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