- Altcoin market is retesting a multi-year breakout with a textbook cup-and-handle structure that signals strong bullish continuation.
- Fractal patterns show repeating accumulation and breakout phases, pointing to a potential expansion phase mirroring past cycles.
- Altcoin dominance has broken out of an ascending wedge with high volume, confirming a major trend shift and growing investor confidence.
The altcoin market is gaining traction again, hinting at the strongest part of the cycle yet to come. After a lengthy period of uncertainty, bullish momentum is resurfacing across charts tracking altcoins excluding Bitcoin and Ethereum. Analysts are closely watching price action breaking out from multi-year accumulation zones.
Notably, the market has pulled back slightly after a recent breakout, forming a textbook retest structure. This setup mirrors the historical “cup and handle” formation. previous cycles show that such pullbacks often lead to explosive continuation rallies.
Fractal Patterns Confirm a Bullish Continuation
The total altcoin market cap reveals recurring cycles with clear accumulation, breakout, and expansion phases. From 2018 to 2020, the market traded sideways, forming a prolonged accumulation range. In 2021, it broke out and entered a sharp uptrend. After a peak, the market corrected and entered another range from 2022 to 2024. This period shaped a new base similar to previous cycles.
Moreover, late 2023 witnessed a breakout above the multi-year resistance. Early 2024 saw a minor pullback and consolidation, forming a smaller range before continuing higher. Currently, the structure appears to be retesting the breakout zone. This aligns with bullish fractal behavior seen in previous cycles. Importantly, three major accumulation zones are clearly marked, each preceding rallies. These repeating phases highlight the consistent cyclical nature of the altcoin market.
Altcoin Dominance Breaks Out of Key Structure
Besides total market cap, altcoin dominance is also flashing strong bullish signals. A daily chart displays an ascending wedge pattern. This pattern formed higher lows while facing horizontal resistance. Price recently broke above the wedge with strong momentum, suggesting a decisive trend shift. The breakout occurred after bouncing off key support, marking the wedge’s bottom.
Additionally, volume surged as price exploded above resistance. The chart labels this breakout zone with “Altcoin 50X”, implying massive growth potential. The price action now climbs vertically, leaving resistance zones behind. Hence, altcoin dominance is expanding rapidly, confirming investor confidence.
