- Analyst identifies a descending triangle pattern, suggesting potential altcoin breakout in 2024.
- Altcoins show market cycles similar to pre-2016 and 2017, suggesting a bullish continuation in 2024.
- RSI and market consolidation indicate renewed buying momentum could drive a significant rally for altcoins.
Analyst el_crypto_prof suggests that altcoins might be up for a major market breakout. According to his analysis, current market conditions resemble the pre-2016 and 2017 crypto rallies. This pattern is based on Elliott Wave Theory and historical market cycles. The total altcoin market capitalization, excluding Bitcoin, appears to be following a familiar movement that points to a bullish continuation.
Early Bull Market Cycles and Wave Analysis
The first wave occurred in 2016, where the total market capitalization saw a dramatic increase. This marked the start of a new bull market, pushing prices higher in the altcoin sector. A brief consolidation phase followed, which allowed the market to regain momentum. As noted in the Elliott Wave analysis, this period is often seen as a preparation stage for even greater price surges.
Notably, the market’s next wave continued into 2017. During this time, altcoins reached their peak market capitalization, driven by strong buying activity. The Relative Strength Index (RSI) broke through key resistance, further indicating heightened market momentum and overbought conditions, which typically point to a strong bullish trend.
Post-2017 Correction and New Wave Cycle
After the 2017 market peak, a sharp correction occurred, bringing altcoins into a bearish cycle. Prices dropped substantially, which led to the start of a new wave cycle in early 2020. This cycle was defined by a rounded bottom formation, which signals that the market was building a base for future upward movement. Analysts believe that the correction exhausted sellers, paving the way for buyers to regain control.
By 2024, the market is said to be in a consolidation phase similar to the period seen in 2016. The current RSI trend, combined with the rounding bottom pattern, suggests a potential shift toward renewed buying momentum.
2024: Approaching a Breakout Phase
The most recent chart analysis highlights the potential for a major altcoin breakout in 2024. El_crypto_prof points to a descending triangle pattern forming near a resistance level of 1.2 trillion USD. If the market breaks through this resistance, it could lead to a new bull market phase, pushing altcoin prices higher.
Additionally, the RSI indicates that the market is cooling off, which might present an opportunity for accumulation before another price surge. If historical patterns hold, altcoins could experience a strong rally similar to the post-2016 market, with substantial gains across the sector.
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.
