The current cryptocurrency cycle is exhibiting characteristics of a reverse altcoin season, according to an analysis by PANews analyst Ali. Traditionally, altcoin seasons follow Bitcoin’s rise, as funds rotate into altcoins and lift broader market sentiment. Yet this cycle is marked by structural weakening and greater divergence among altcoins, complicating the rally narrative.
Bitcoin bottomed near $15,000 following the FTX collapse in November 2022 and later climbed to about $126,000 by October 2025. Despite Bitcoin’s strength, altcoins have failed to deliver a typical rally.
Many altcoins have broken long-term trend channels, failed to hold key support levels, and shown increased volatility. The market is now characterized by structural divergence and two-way trading opportunities rather than a uniform upward trend. This phase signals selective deleveraging and a valuation correction for altcoins, with ongoing downside risk and a continuation of the divergent pattern in the near term.
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