- Altcoin market saw notable growth from $1.3 billion in 2016 to $1.7 trillion in 2021, driven by key market cycles.
- A new rounded bottom formation in Q4 2024 signals possible accumulation, pointing to potential market recovery afterward.
- Historical patterns suggest a bullish altcoin cycle could begin after 2024, exceeding the previous $1.7 trillion peak.
The altcoin market may be gearing up for a new cycle, according to crypto analyst MikybullCrypto. Despite claims that altseason may be over, the Total Altcoin Market Capitalization (excluding Bitcoin) chart tells a different story. Data from 2015 to a projected 2028, highlights several crucial patterns that suggest potential upward momentum in the coming years.
Historical Market Trends: Key Phases and Movements
From 2016 through 2018, the altcoin market experienced dramatic shifts. Notably, Q4 2016 marked a low point, where the market capitalization sat at around 1.3 billion USD. However, this phase was followed by a breakout during the 2017 bull run, pushing the market to a high of approximately 460 billion USD. This rapid rise was largely driven by the ICO boom, coupled with increased retail interest in cryptocurrencies.
By 2018, the market saw a sharp decline, with a bear market lasting until Q4 2020. This period witnessed rounded bottom formations, signaling repeated attempts to stabilize before major growth resumed.
Recent Consolidation and Accumulation Signals
Since peaking at 1.7 trillion USD in 2021, the market has entered a period of consolidation, with fluctuations between 680 billion USD and 1 trillion USD. This sideways movement is seen as an accumulation phase, with large investors potentially buying up altcoins at lower prices. A rounded bottom is currently forming, notably similar to previous cycles in Q4 2016 and Q4 2020.
MikybullCrypto’s analysis suggests that the market may experience further consolidation through Q4 2024, with a possible decline to the 700-800 billion USD range. This area represents a key support zone, much like previous cycles.
What Lies Ahead for Altcoins?
Looking ahead, the altcoin market could see another bull run after 2024. Based on historical patterns, there is potential for the market to exceed 1.7 trillion USD, driven by technological developments and broader adoption. However, the short-term outlook indicates continued consolidation and possible volatility before a more bullish phase begins.
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.
