Altcoin breadth on Binance has deteriorated sharply, with a big majority of tokens now buying and selling beneath a broadly watched long-term pattern stage, an exhaustion sign that CryptoQuant contributor Darkfost frames as a liquidity drawback as a lot as a value drawback.
In a submit on X, Darkfost (@Darkfost_Coc) shared a CryptoQuant chart monitoring the share of Binance-listed altcoins buying and selling beneath their 50-week transferring common alongside Bitcoin’s value. His headline declare: “LIQUIDITY CRUNCH PUSHES 83% OF ALTCOINS INTO BEAR TREND,” arguing that the majority traders uncovered to non-Bitcoin, non-stablecoin property are “now in vital issue,” notably these nonetheless holding positions.
Altcoin Breadth Breaks Down On Binance
Darkfost’s chart, titled “Altcoins efficiency (Binance)”, reveals the share of altcoins beneath the 50-week transferring common rising again into traditionally harassed territory. In his newest learn, 83% of Binance altcoins are beneath that threshold, an indication that weak point just isn’t remoted to a handful of names however unfold throughout the tape.
He additionally pointed to an much more excessive episode earlier this month. “Because the finish of the bear market in 2023, a brand new file was set on February 7, with greater than 92% of altcoins on Binance buying and selling beneath this key technical help,” he wrote, describing it as a post-2023-cycle excessive in draw back participation.
Associated Studying
That stands in stark distinction to the situations seen throughout earlier upside phases. Darkfost famous that in March 2024 solely 6% of Binance altcoins traded beneath the 50-week line, and in December 2024 the determine was 7%. Outdoors of these multi-month home windows, he added, at the very least half of altcoins remained beneath the brink, habits he characterised as meaningfully totally different from the prior cycle’s breadth dynamics.
Darkfost framed the altcoin drawdown as inseparable from Bitcoin’s pattern and the macro backdrop, suggesting that the market’s danger price range has tightened whereas altcoin provide has expanded.
Associated Studying
“The market continues to be pushed by BTC’s actions, which has been in a downtrend since October 2025 following an ATH at $126,000. At current, BTC’s momentum stays extremely unsure, with value nonetheless hovering at roughly 46% of its all time excessive. Rising geopolitical tensions, notably between the US and Iran, alongside more and more hawkish projections and tone from the Fed expressed within the newest FOMC minutes, are making the present surroundings particularly difficult for extremely risky property equivalent to altcoins,” he wrote.
The chart itself marks BTC close to the mid-$60,000 vary, underscoring his broader level: in a regime the place Bitcoin course is unclear and macro inputs are hostile to period and volatility, breadth in higher-beta tokens can deteriorate shortly after which keep impaired.
Why The 50-Week Line Issues
Darkfost emphasised the 50-week transferring common as a long-horizon filter utilized by market individuals to separate corrective phases from structurally constructive ones. When a majority of tokens sit beneath it, rallies are typically narrower, choice stress rises, and “alt season” narratives turn into tougher to maintain with no decisive shift in liquidity situations.
He attributed the present setup to “the rise in altcoin provide throughout the broader crypto market mixed with nonetheless constrained liquidity situations,” a mix that may mechanically dilute marginal flows. In that surroundings, he argued, outperforming turns into much less about broad beta publicity and extra about understanding how market construction has modified.
At press time, the overall crypto market cap excluding Bitcoin stood at $943.46 billion.
Featured picture created with DALL.E, chart from TradingView.com
