Altcoin Market Shows Signs of Recovery

The cryptocurrency market has been experiencing a period of low trading activity, with altcoins seeing an 80-85% decline in volumes. This volatility is concentrated among major tokens, leading to a decrease in interest as reflected by Google searches for 'altcoin'. As a result, traders are focusing on Bitcoin and top assets.

However, if Bitcoin dominance continues to pull back from its local highs and consolidates within a key range, it may create an opportunity for altcoins to regain momentum. This could lead to a broader recovery in the market.

The potential for a bottom formation is indicated by bullish divergences in select altcoins such as SEI, ARB, AAVE, INJ, and FIL. These tokens have underperformed in recent weeks but are showing signs of weakening selling pressure through higher lows in momentum indicators.