- The altcoin market is ready for a breakout as it regains key support levels.
- Historical accumulation patterns suggest a bullish phase may be approaching.
- Despite a slight decline, trading volume and RSI indicate market stability.
The altcoin market shows evidence of a pattern of history as it recovers major support levels and stabilizes. The action is closely observed by analysts since a similar sequence of past actions has resulted in major rallies.
Historical Patterns Suggest Bullish Momentum Ahead
Market participants are now assessing the likelihood of another breakout following a familiar accumulation phase. According to a technical analyst, Moustache, the 2022–2023 consolidation shares striking similarities with prior cycles, particularly in structure and timing. With higher lows forming across various altcoins, he believes the market may be positioning for another upward movement.
Source: Moustache
Building on historical trends, market analyst Moustache noted that the current altcoin market structure closely mirrors past accumulation zones from 2015 and 2019. He underlined that each of those periods began with a double bottom pattern followed by higher lows, an arrangement that often signals a shift toward bullish momentum. His evaluation revealed that the Total2 market cap could follow a similar path, as long as current support levels hold through this consolidation phase.
Volume and Technical Indicators Show Diverging Trends
Tracking market behavior through the Total2 chart, it appears the altcoin market is following a well-established cyclical pattern, with each recovery phase marked by steadily higher lows. The Total Market Cap Excluding Bitcoin stands at $969.24 billion, reflecting a slight 2.20% drop. This minor decline, while noteworthy, comes after the market saw significant growth through 2024, maintaining a key structural support level.
Examining trading volume fluctuations, the altcoin market has seen a notable decrease since the 2021 peak, but the trading volume remains elevated at $1.94 trillion. Although this drop marks decreasing investor confidence compared to prior years’ highs, it still points towards a foundation of stability. The Relative Strength Index (RSI) shows an even market, a neutral reading of 50.82, with neither overbought nor oversold at present.
Source: TradingView
Looking at changes in liquidity, the MACD indicator shows bearish momentum, as the blue line lies below the orange signal line. This development points to weakening bullish activity in the short term. Despite the bearish pressure, the absence of new lows suggests that the altcoin market may be poised for a potential rebound, given the historical success of past structural formations.
