- Altcoins break multi-year descending triangles vs Bitcoin, signaling early bullish momentum.
- Volume compression during consolidation hints at strong price moves once breakout occurs.
- Experts recommend focusing on established altcoins, using DCA, and keeping a “moon bag” for upside potential.
Crypto investors should pay close attention as altcoins show renewed strength versus Bitcoin, signaling a potentially significant market shift. According to analyst Javon Marks, the total altcoin market capitalization relative to Bitcoin is holding a “MAJOR BREAKOUT” after years of consolidation.
The chart he shared tracks the ratio from 2018 to 2027, revealing two major descending triangle formations, each compressing price action for multiple years before breaking upward.
The first triangle, after reaching its peak in 2018, experienced testing of support and resistance levels in 2019. A strong breakout occurred in mid-2020, showing a strong rally in 2021. Marks points out that the second triangle occurred after the 2021 peak, illustrating lower highs and strong horizontal support.
Eventually, towards late 2024 or early 2025, the ratio of the altcoin price to the price of a Bitcoin escalated beyond the falling resistance line, which established the initial stages of another positive market trend. As a result, market participants are taking note of the higher levels being defined above resistive zones.
Patterns and Potential Gains
Besides historical symmetry, volume trends confirm the setup. During both consolidation periods, trading volume gradually declined, reflecting indecision before major directional moves. When breakouts occurred, price momentum accelerated as trapped capital rushed in.
This technical behavior suggests altcoins may replicate past performance, potentially producing sustained upward moves relative to Bitcoin. Additionally, the current trajectory indicates alignment with conditions seen before the 2021 altcoin rally.
Analyst Stockmoney Lizards provides practical investment guidance. He recommends focusing on established altcoins like INJ, HYPE, XMR, and BCH rather than chasing meme tokens.
“I don’t want to sound like a broken record, but fortunes are built at the bottom,” he said. Lizards emphasizes dollar-cost averaging below key levels, scaling positions carefully, and maintaining a “moon bag” for potential windfall gains. By managing risk and avoiding overdiversification, investors can navigate volatile markets while positioning for strong recoveries.
