Altcoin Market Eyes Bullish Wave as Elliott Patterns Signal a Major 2024 Breakout

• Elliott Wave suggests the altcoin market may repeat a bullish breakout similar to 2016, beginning in 2024.
• RSI signals indicate market momentum could shift as downtrends break, aligning with a potential upward move in altcoins.
• Key resistance levels in the altcoin market are poised for a breakout, supported by technical patterns and historical data.

The altcoin market is undergoing a re-accumulation phase, according to a recent analysis by crypto expert El_crypto_prof on X. With the market experiencing what is often termed “chop season,” analysts are now pointing to a potential bullish trend forming for altcoins. 

Notably, the focus of this analysis is on the larger market cap excluding Bitcoin, with an emphasis on the potential emergence of a new wave in the cryptocurrency cycle. The analysis draws on technical patterns, including Elliott Waves, and the Relative Strength Index (RSI) as key indicators for future price action.

Repetition of Elliott Waves and Key Levels

In examining the market, the analysis highlights two major Elliott Waves. The first wave began in 2016 and was followed by a consolidation phase, leading to an upward trend. Notably, the second Elliott Wave, marked in 2024, appears to be following a similar pattern. 

Analysts emphasize that this repetition signals the possibility of another bullish move, particularly after the consolidation phase ends. Two specific points in the cycle, highlighted by yellow circles, are key breakout areas identified in both 2016 and 2024. These points suggest potential resistance or support levels that could serve as triggers for the next upward trend.

RSI Indicates a Possible Bullish Reversal

In addition to the Elliott Wave analysis, the RSI indicator provides further insight into the potential for an upward trend. The RSI shows the market moving from overbought to oversold conditions, with notable downtrends breaking before an upward trajectory resumes. 

A similar pattern occurred in 2016, leading to a bullish rally, and now, in 2024, the RSI appears to be aligning once again for a bullish reversal. Analysts are paying close attention to these RSI movements as a strong indicator of potential market momentum.

Wave 2 on the Horizon

With the potential for a second major wave forming in 2024, analysts see this as a key moment for the altcoin market. Notably, the combination of Elliott Wave patterns and RSI data points to a strong possibility of another upward trend. 

While the market is currently in a consolidation phase, historical data from 2016 suggests that this could be the precursor to a major breakout. The alignment of both technical and momentum indicators adds weight to the forecast of an approaching bullish wave, marking this as a crucial period for altcoin investors.