- The crypto market is steadily building strength above its all-time high support level.
- Analysts predict a spike that could push the total market cap to $10 trillion.
- Historical patterns show that long pauses often lead to upward moves.
The total cryptocurrency market capitalization is exhibiting an extended consolidation phase near its all-time high level, which could signal a powerful breakout. Renowned market analyst Anup Dhungana suggests that the prolonged sideways movement at this level is a precursor to a rally, with technical projections hinting at the market’s potential to hit an astonishing $10 trillion valuation in the coming years.
The weekly chart highlights the crypto market’s resilience and its ability to recover from historical downturns. From its previous ATH in 2021 near $3 trillion, the market experienced a sharp decline, stabilizing within a channel.
Historical Trends and Recovery Dynamics
The crypto sector has a history of rebounding after corrections, with patterns revealing a climb within a defined climbing channel since 2018. For instance, the market’s recovery from the COVID-19 crash in March 2020 was a defining moment. After bottoming out at approximately $122 B, it shot past $2 trillion by 2021.
Another critical phase was the mid-2019 rally, which saw the market capitalize on bullish momentum, touching new highs before retracing. Both instances indicate a recurring pattern: consolidation within the channel precedes massive rallies. The consolidation near the $3.57 trillion level suggests a similar setup, with the market poised for a substantial upside move. As Dhungana aptly puts it, “The larger the consolidation, the stronger the pump.”
Technical Analysis: Eyeing the $10 Trillion Milestone
The long-term ascending channel highlighted in the chart provides a framework for price projections. Currently, the market is retesting the breakout zone, a level around $3.11 trillion, which also aligns with previous support and resistance levels.
Should the market follow its historical trajectory, the next target lies near the channel’s upper boundary. This aligns with the $10 trillion mark, a psychological milestone that could redefine the crypto landscape. Such growth would represent nearly a 200% increase from current levels, showcasing the crypto market’s immense growth potential.
The Path Ahead: Risks and Opportunities
While the macro perspective remains bullish, Dhungana notes that the crypto market is not immune to global economic uncertainties. Any deviation below the $3.11 trillion support could trigger a deeper correction, but the strong base built at this level makes such a scenario unlikely in the near term. Instead, investors should focus on the long term, with the market’s historical resilience and growing institutional adoption as drivers for future growth.
