- Altcoins have repeated a breakout structure that previously delivered a 90% rally, with current conditions signaling the potential for larger moves.
- Increased liquidity, cautious retail sentiment, and institutional positioning create a market setup that may accelerate altcoin capitalization beyond earlier expectations.
- Upcoming rate cuts in September and October mirror past cycles, where monetary easing coincided with sharp altcoin rallies and expanding market momentum.
Altcoins are showing a familiar technical structure that previously triggered a sharp rally, while upcoming rate cuts may provide additional momentum.
Repeating Structure Sparks Rally Expectations
Merlijn The Trader noted that altcoins have formed the same ascending base structure seen before their last breakout. The setup included a series of higher lows pressing against horizontal resistance, which eventually released pressure in the form of a +90% rally.
He pointed out that this structure has now re-emerged, with prices breaking out once again. However, he emphasized a key difference this time: the presence of more liquidity and a higher level of disbelief among participants. That combination, he argued, creates conditions where rallies tend to accelerate violently.
According to him, the current breakout is not signaling a short-term pump but rather the potential for a powerful market expansion. The technical pattern suggests that altcoin market capitalization could add hundreds of billions, triggering what many would recognize as a full-scale altseason.
Liquidity and Disbelief Drive Market Conditions
The analysis explained that retail investors remain cautious, while institutional players are gradually positioning. This has left sidelined capital waiting for confirmation, which strengthens the market’s explosive potential when momentum builds.
More liquidity in the system compared to the previous cycle adds further weight to this outlook. Traders argue that disbelief often amplifies moves, since fewer participants expect such a rally until it is already underway.
As Merlijn observed, history may not simply repeat in a straightforward manner. Instead, the same structure could deliver an even stronger reaction as conditions have shifted. The presence of increased liquidity and restrained sentiment forms what he described as rocket fuel for the next phase.
Rate Cuts Add to Rally Narrative
infinite.liquidity.kta added another layer to the outlook, pointing toward macroeconomic policy. The account outlined that the first interest rate cut of the year is expected this September.
The comparison was drawn to 2024, when a series of rate cuts coincided with a parabolic rise in altcoins. That year saw a 50 basis-point cut in September, followed by two 25 basis-point cuts in November and December. Each cut corresponded with stronger market momentum.
This year, the roadmap includes two expected 25 basis-point cuts, one on September 17 and another in late October. According to the analysis, this short period may represent one of the final opportunities to accumulate before altcoins enter a potential parabolic phase into late Q4 2025 and early 2026.
