Key Notes
Altcoin season chances revive again as the long-short ratio moves above 1, showing chances of broader market recovery.
The Russell 2000 hit a new all-time high in January, rising 7% in the first 15 days of 2026.
This has increased the appetite for risk-on assets, with analysts seeing chances of greater upside.
The broader crypto market is showing renewed strength, with the Bitcoin price surging past $97,000 earlier this week.
There is growing market chatter around a strong altcoin season in Q1 2026, as the Russell 2000 index hits record highs this month in January.
On-chain data suggests traders are increasingly willing to take on more risk while positioning for a potential altcoin recovery.
Altcoin Season Brewing up for Q1 2026
Altcoins have been showing strength recently, with top assets like Ethereum , BNB , Solana , showing strong gains on the weekly chart.
On-chain indicators confirm strength in the altcoin space, with most assets showing a long-to-short ratio above 1. Privacy coins, led by Monero (XMR), have also been drawing increased attention recently.
Crypto analytics platform Alphractel noted that the long positions are currently dominating over the short positions.
Related article: Best Altcoins to Buy in January 2026
The chart below shows that higher-ranked altcoins, with smaller market capitalizations, are posting even stronger ratios.
The trend points to increasing risk appetite among traders, signaling rising confidence in a broader altcoin recovery.
Altcoins long vs. short ratio. | Source: Alphractel
From an investor psychology perspective, many altcoins have corrected by 80%-90%.
As a result, investors who are already facing significant losses have little incentive to sell and are instead choosing to hold their positions.
Another popular crypto market analyst, Crypto Patel, noted that the altcoins vs Bitcoin chart is showing signs of a bottom formation.
He expects the next “altseason” in 2026 to be larger than the 2017 and 2021 cycles combined, citing a key technical setup in the OTHERS/BTC chart.
According to Patel, OTHERS/BTC has returned to a major support level that previously occurred before every major altcoin cycle.
He highlighted that similar conditions led to rallies of roughly 423% in 2017 and 503% in 2021.
If the historical pattern repeats, Patel expects a move of 702% in 2026.
Altseason 2026 Will Be Bigger Than 2017 & 2021 Combined ?
OTHERS/BTC (Altcoins Vs Bitcoin) Is Back At The Same Support Level That Triggered Every Major Altcoin Cycle.
2017: +423% Rally
2021: +503% Rally
2026: ~702% Projected MoveEvery Cycle This Ratio Bounces, Small Caps Go… pic.twitter.com/xkkl1AVOzR
— Crypto Patel (@CryptoPatel) January 16, 2026
Russell 2000 Index Shows Major Strength
The Russell 2000 index, reflecting small-cap stocks, is showing major strength after hitting a fresh all-time high in January. This highlights renewed strength in U.S. small-cap stocks, setting up a strong backdrop for risk assets.
In just the first 15 days of 2026, the index has risen 7%, adding $220 billion to its market cap.
Veteran trader Peter Brandt noted that the index has broken out from an inverse head-and-shoulders pattern, prompting him to take a long position.
Equities??? I have the largest long position of my life right now as I write this. I am a bit spooked by the size of my positions. Most of it is not in the company trading account but in its pension fund.
In terms of trading I am long Russell, long DAX, long Osaka Dow and ultra… pic.twitter.com/djktmcFScJ— Peter Brandt (@PeterLBrandt) January 16, 2026
