- The Altcoin market has cleared the resistance of 2021 and has set support, mirroring 2017 and 2021 breakout-retest patterns.
- Each prior breakout phase triggered a parabolic expansion, meaning today’s market structure is in sync with prior Altseason cycles.
- Analysts suggest the current retest is the technical confirmation before a broad Altcoin expansion as Bitcoin dominance begins to decline.
The Altcoin market is displaying structural signs of a new parabolic phase as it breaks through historical resistance levels, suggesting the early stages of Altseason may already be underway.
Structural Breakout Above 2021 Resistance
EᴛʜᴇʀNᴀꜱʏᴏɴᴀL shared an analysis indicating that the Altcoin Market Cap has decisively broken above its 2021 all-time high resistance and completed a precise retest. According to the chart, this setup mirrors historical patterns that preceded major bull phases in 2017 and 2021.
The analyst noted that each previous cycle — 2013 to 2017, and 2017 to 2021 — followed a similar pattern: a breakout from the prior all-time high, a clean retest, and then a rapid market-wide expansion. This repetitive sequence, they observed, forms a structural rhythm in the Altcoin market’s long-term trajectory.
Currently, the market has executed the same breakout-retest structure, suggesting that the foundation for another large-scale move is forming. The pattern resembles a technical “spring” — compressing energy before potential acceleration in value across the broader Altcoin space.
Historical Cycles and Market Structure
Referring back to previous cycles, the 2013 resistance acted as a cap for several years until 2016, when the market broke above it. That event started the first Altseason of notable proportions, marked by widespread rallies and all-time returns on altcoins.
During the subsequent cycle, the resistance level of 2017 was violated early in 2021. After confirming support through a brief retest, the market entered another broad-based rally, albeit less explosive than its predecessor. Each instance reinforced the recurring technical structure: resistance break, retest, expansion.
In the ongoing cycle, the 2021 resistance level has been reclaimed, suggesting the market is following the same path once more. The recent retest near this macro level is interpreted by experienced traders as a technical confirmation — a phase that historically preceded parabolic growth across the Altcoin sector.
Market Sentiment and Outlook
Despite these technical confirmations, a large portion of the market remains skeptical about an approaching Altseason. Many investors point to Bitcoin’s recent dominance, cautious macro sentiment, and regulatory uncertainty as reasons for subdued altcoin performance.
However, the post shared by EᴛʜᴇʀNᴀꜱʏᴏɴᴀL argues that such disbelief is typical at this stage of the cycle. Historically, Altseasons have lagged behind Bitcoin rallies, often beginning after Bitcoin stabilizes following strong upward moves. The current environment shows similar conditions.
If historical trends continue, the coming months could bring rotations across key sectors — from major Layer 1 and Layer 2 projects to DeFi tokens, meme coins, and smaller-cap assets. As capital flows diversify, Bitcoin dominance may decline, giving way to broader market participation.
From a structural perspective, the Altcoin market appears to be entering the early phase of expansion. The cyclical rhythm, repeating across decades, suggests that the macro setup for Altseason is taking shape once again — not as a future event, but as a process already in motion.
