- Altcoins are displaying a bullish wedge pattern concurrent to what has transpired in previous cycles, which suggests possible upside momentum throughout the rest of the crypto market structure.
- Historical momentum indicators imply divergence, showing increasing strength underneath falling prices that imply accumulation stages that were prior altcoin rallies.
- Current altcoin dominance compression and strengthening momentum mirror pre-breakout setups from earlier cycles, hinting at the approach of a new Altseason.
Altcoins maintain bullish signals that suggest a potential market reversal as historical patterns begin to reappear. Market indicators show similarities to previous cycles that preceded strong rallies across the digital asset space.
Recurrent Cycles Indicate Strength Beneath Market Weakness
According to crypto analyst Javon Marks , altcoins are displaying patterns that mirror earlier market cycles. Each past cycle began with a prolonged bearish phase marked by declining altcoin dominance within a descending wedge formation. During these downturns, investor sentiment weakened as capital shifted toward Bitcoin or stable assets.
Despite this visible weakness, the underlying momentum indicators presented a different narrative. Historical charts revealed that as altcoin dominance made new lows, momentum indicators such as the histogram began rising. This divergence suggested a slowdown in selling pressure and a gradual accumulation period within the market.
As these situations evolved, the previous cycles experienced a clear breakout above the wedge. In the past, all upward breakouts led to extended altcoin rallies and the months were the best performers against Bitcoin, as liquidity moved toward riskier assets.
Current Structure Mirrors Historical Pre-Breakout Phases
The present market structure between 2024 and 2025 is forming a similar setup. Altcoin dominance continues to compress within a falling wedge, a pattern observed before past upward expansions. The histogram momentum also shows an upward divergence, reflecting growing strength beneath apparent market calm.
This technical structure closely resembles the pre-breakout stages seen in earlier cycles. Marks notes that such conditions previously acted as a precursor to widespread growth in altcoin capitalization. If the wedge pattern confirms a breakout, it may serve as the next key signal of market rotation.
Traders are closely monitoring these formations for confirmation. The alignment between price compression and strengthening momentum could indicate that the market is preparing for another cycle similar to prior Altseasons.
Altcoins Poised for Potential Upside if Momentum Holds
While overall sentiment remains subdued, the technical structure continues to favor bullish conditions. The repeated emergence of similar formations suggests that the market could be coiling energy for another expansion phase.
Javon Marks emphasized that the quiet conditions often precede major turning points. Historically, such setups have initiated powerful upward moves across the altcoin sector once breakout confirmations occurred.
If momentum maintains its current trajectory, altcoins could enter another period of dominance. Although confirmation remains pending, the consistent alignment of chart patterns and momentum suggests that the foundation for the next Altseason may already be forming beneath the surface.
