- Crypto cycles show repeating breakout patterns, with past surges following consolidation phases—bullish momentum is building.
- Recent support retest aligns with historical rebounds, signaling a potential strong rally if market structure holds.
- Expanding money supply fuels crypto growth, mirroring past cycles—macro liquidity may drive the next major bull run.
Crypto analyst Javon Marks shows the cryptocurrency market appearing to be in the early stages of a strong bullish cycle. Historical data suggests expansion after accumulation phases. The total crypto market capitalization, as compared to U.S. money supply, has a repeating pattern of breakouts and rallies. Surprisingly, the current cycle is very much similar to previous bull runs, such as the 2016-2017 and 2020-2021 cycles. The market just tested a major support level, paving the way for another rally to the upside.
Historical Breakouts and Market Trends
The crypto market has followed a structured growth pattern over multiple cycles. From 2015 to 2017, the market consolidated within a symmetrical triangle before breaking out. That breakout led to a parabolic run, taking crypto market capitalization to unprecedented levels. Similarly, between 2020 and 2021, a consolidation phase preceded another surge, reinforcing this repeating trend.
Between 2022 and 2024, another consolidation period emerged, forming a symmetrical triangle. The recent breakout above this pattern indicated bullish momentum. However, a brief retracement occurred, bringing prices back to a crucial support zone. This area aligns with the upper boundary of the previous triangle. Historically, such support retests have fueled strong rebounds and renewed bullish momentum.
Structural Growth and Market Outlook
Long-term ascending trendlines indicate sustained market expansion. The crypto market has consistently formed higher lows across multiple cycles, confirming structural growth. Despite recent corrections, the broader bullish trend remains intact. Price action has stayed above key trendlines, reinforcing a strong technical foundation for future gains.
Additionally, macroeconomic liquidity plays a pivotal role in shaping crypto movements. Changes in money supply have historically influenced market cycles. With increasing global liquidity, the crypto market may experience continued capital inflows. This could lead to another expansion, similar to past breakouts.
Market analysts suggest that the current positioning aligns with historical trends. When previous accumulation phases ended, powerful uptrends followed. The current technical setup suggests a similar outcome, pointing toward sustained long-term growth. Consequently, if past patterns hold, the crypto market could soon resume its upward trajectory.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.