Analyst Predicts Altcoin Market Breakout in Late 2024, Resembling 2016 Rally

• Altcoin market shows a consolidation pattern, similar to 2016, hinting at a potential bullish breakout in late 2024.
• RSI breakout indicates rising momentum, aligning with past cycles; key resistance at $1.2 trillion is crucial for the rally.
• Support at $528 billion may attract buyers, setting the stage for a possible altcoin market surge if resistance breaks.

Crypto analyst el_crypto_prof on X suggests that the altcoin market might be on the verge of a breakout, reminiscent of past bullish cycles. Drawing comparisons between historical price action and current market dynamics, the analyst highlights notable patterns and technical indicators that suggest a potential rally in 2024, contrasting with previous market cycles.

Historical Patterns Indicate Potential Upsurge

El_crypto_prof focuses on the Altcoin Total Market Cap, examining wave structures from past years to project future movements. The chart identifies two key waves: the first wave from 2016 to 2017, marked by a massive altcoin rally, followed by a second wave from 2017 to 2018, characterized by a steep correction.

Notably, a breakout in 2016 led to a rapid rise in market cap. The current market, positioned similarly to the 2016 breakout phase, shows a consolidation pattern that could precede a new bullish surge. The projected breakout in late 2024 similars the past, suggesting another potential upward movement if the historical pattern repeats.

Key Technical Indicators Highlight Market Momentum

A rounded bottom pattern, observed in both historical and current market phases, indicates a bullish reversal as buying pressure gradually increases. Moreover, the Relative Strength Index (RSI) shows an emerging breakout from a downward trend, mirroring the conditions preceding the 2016 rally. 

If the RSI continues its upward trajectory, it may signal strengthening bullish momentum similar to previous cycles. This trend could confirm market readiness for a breakout if it continues to align with historical precedents.

Resistance Levels and Potential Breakout Triggers

The analyst identifies crucial resistance and support levels influencing the market’s potential trajectory. The $1.2 trillion resistance level serves as a barrier, with the market approaching but not yet surpassing it. A breakout above this level could propel the market into new highs, potentially exceeding previous peaks. 

Meanwhile, support around $528 billion provides a safety net, with buyers likely stepping in during pullbacks. The chart suggests that the market is gearing up for another breakout, similar to the 2016-2017 rally, indicating a possible altcoin bull market in late 2024 if key resistance levels are breached.