- The crypto market cap structure mirrors past bull cycles, with consolidation and key support holding, signaling a potential breakout.
- RSI levels have reached zones that previously triggered 180% and 105% surges, reinforcing the bullish outlook for the coming months.
- A critical $2.4T support level, once resistance in 2021, has flipped into strong support, aligning with historical breakout trends.
The cryptocurrency total market capitalization remains stable despite recent fluctuations. Analyst Moustache is closely watching as the market consolidates. Historically, similar patterns have led to massive breakouts, signaling a potential bullish phase ahead.
Market Structure Resembles Previous Bull Cycles
The current value of the cryptocurrency market is at $2.65 trillion. The recent price movement is similar to the 2020–2021 cycle, in which an enormous rally was started by a breakout. In that cycle, a brief accumulation phase preceded a sharp upward movement.
Similarly, the market consolidated for nearly a year after bottoming in late 2022. The recent price breakout resembles the previous bull market structure. As long as the market holds key support levels, the outlook remains positive.
Additionally, trendlines confirm a strong uptrend. Black diagonal lines on the chart highlight key resistance and support zones. The most recent breakout suggests that the market is positioning itself for another major rally.
RSI Levels Indicate Strong Upside Potential
Technical indicators further support the bullish outlook. The Relative Strength Index (RSI) has reached a level seen twice before significant rallies. In the past, when the RSI reached these levels, the overall market capitalization increased by 180% and 105%, respectively.
Additionally, a long-term trendline that has been in existence for more than a year and a half has been successfully retested. The bullish momentum was supported by the RSI hitting a critical level at the same time as this retest. Historically, such confirmations have preceded extended upward movements.
A crucial support level around $2.4 trillion adds to the positive sentiment. This level, previously a resistance zone in 2021, has now flipped into strong support. The price recently bounced from this zone, confirming its significance.
Market analysts expect April to bring further upside. Historical data suggests that the crypto market performs well after successful retests of major support levels. Additionally, past cycles indicate that when RSI rebounds from key levels, a strong bullish continuation follows.
