Bullish Altcoin Surge Looms as Cup and Handle Pattern Signals Major Price Breakout, Says Analyst

• Altcoins form a cup and handle pattern, indicating potential bullish continuation once resistance is broken.
• The market cap could nearly double to 2.157 trillion USD if the bullish pattern confirms and breaks resistance.
• Market consolidation suggests a potential altcoin breakout as the handle formation tests the resistance level near 1.25 trillion USD.

According to crypto analyst el_crypto_prof on X, the altcoin market may be forming a bullish pattern. He points out that altcoins have been shaping a years-long cup and handle formation, one of the most bullish signals in technical analysis. This could indicate potential price rallies for altcoins in the coming months, based on historical market behavior.

Cup Formation Indicates Market Recovery

The “cup” formation is the first notable feature of the chart. It begins in April 2021 and stretches until late 2023. This rounded-bottom structure shows a gradual recovery after a sharp downturn, with the lowest point occurring in June 2022. The market cap hit approximately 420 billion USD during that period, reflecting a deep decline before beginning a slow recovery phase.

From its peak of 1.25 trillion USD, the market fell by around 830 billion USD. The recovery and consolidation during this time indicate significant market accumulation. This accumulation phase is often seen as an early sign of a future rally, supported by historical trends.

Handle Formation Signals Consolidation

Following the cup formation, a downward-sloping handle emerged in early 2024. Handles often form after an initial uptrend, representing a temporary consolidation. The handle’s low lies at approximately 770 billion USD, slightly under the current market cap of 839 billion USD.

This handle suggests the market is experiencing hesitation or profit-taking before a potential breakout. Typically, if the price breaks through the upper boundary of the handle, it confirms the bullish continuation pattern, signaling more upside for the altcoin market.

Bullish Target: 2.157 Trillion USD Market Cap

If a breakout occurs, the target for the altcoin market cap could reach 2.157 trillion USD. This projection is calculated by adding the depth of the cup, approximately 830 billion USD, to the breakout point around 1.25 trillion USD. Currently, the market is testing the resistance formed at the top of the handle, and a breakthrough could lead to substantial price increases for altcoins.