Crypto Analyst Predicts Bullish Breakout as Altcoin Market Tests Key Support Levels

• Altcoins have formed a descending broadening wedge pattern, indicating a potential bullish breakout soon.
• The altcoin market cap is currently testing key support between $800B and $850B after a breakout in May 2023.
• Crypto analyst highlights the importance of holding above the support zone to maintain bullish momentum.

According to crypto analyst el_crypto_prof on X, the altcoin market has been forming a descending broadening wedge pattern over the past six months. This pattern, often seen as a bullish reversal signal, suggests that an upward breakout may soon occur. Many are watching closely for the potential start of the second wave of the ongoing bull market. 

Descending Broadening Wedge and Market Trends

The descending broadening wedge featured in the chart shows the price moving between two diverging downward trendlines, with lower highs and lower lows. The upper boundary marks a series of lower highs, while the lower boundary highlights expanding volatility. 

In May 2023, the price finally broke above the upper trendline, signaling a bullish breakout. After this breakout, the market cap surged, reaching above $900 billion before consolidating just above the breakout zone.

Key Support and Resistance Levels

Following the breakout, the market is currently testing support around the $800 billion to $850 billion zone. Previously a resistance level, this region has now turned into a crucial support area. 

Holding above this range will determine whether the bullish momentum continues. Notably, the chart highlights this support, emphasizing the importance of maintaining this level to avoid a potential retracement.

Moving Averages and Market Outlook

The chart highlights key moving averages and dotted trendlines that have helped guide price action. The price has broken above both the upper trendline and the moving averages, typically indicating stronger bullish momentum. 

Currently, the market cap is at approximately $849.75 billion. If the market remains above the support level, further upward movement toward the $1 trillion mark could be expected. However, failure to maintain this support could lead to a retest of lower levels within the wedge formation.