Historical Trends Suggest Altcoin Market Could Enter Parabolic Phase by 2025, Analyst Says

• Altcoins could enter a parabolic phase in 2024/2025 if current retest levels hold, mirroring past patterns from 2017 and 2021.
• The MACD indicator signals an upcoming market shift, with crossovers seen before major bull runs in 2017 and 2021.
• Retest zones remain crucial; holding key support levels may trigger an altcoin rally, while failure could delay the expected move.

According to analyst El_Crypto_Prof, the altcoin market could be up for an upward movement, as historical trends suggest a potential parabolic rise in 2024 or 2025. He points out that the current retest phase is similar to previous market cycles, notably from 2017 and 2021, when altcoins saw sharp gains after consolidation periods. With the U.S. elections approaching, the crypto market’s behavior in past election years hints at similar upward moves this time around.

Historical Parabolic Curves from 2017 and 2021

The altcoin market has experienced two notable parabolic rises, one in 2017 and the other in 2021. In 2017, altcoins underwent an extended accumulation phase, followed by a retest of a critical support level. 

This pattern did pave way for the sharp rise, eventually leading to the 2017 market peak. The 2021 bull run similarly began after the Covid-19 market crash. As prices recovered, the market retested key support before entering another parabolic curve.

Both of these past events highlight the significance of retest zones, where price pullbacks allow market participants to re-enter positions, fueling a broader rally. The analyst emphasizes the similarity of the current market setup, suggesting that another parabolic curve may form soon if the pattern holds.

Key Indicators Point to 2024/2025 Bullish Phase

Market cycles often repeat, and key indicators may provide early signals of the next major upward move. The MACD (Moving Average Convergence Divergence) indicator, which measures trend momentum, showed notable crossovers before the 2017 and 2021 parabolic runs. The MACD is now approaching a similar crossover point, hinting at a potential market shift in 2024 or 2025.

Furthermore, accumulation phases, seen through consolidation periods marked by flat price action, suggest that larger investors are positioning for another rally. This is consistent with past patterns, where accumulation often precedes strong market moves.

Crucial Retest Zones and Future Market Direction

The current retest zone remains crucial in determining the market’s next direction. If prices hold above key support levels, it could trigger the next parabolic rise in altcoins. However, failure to maintain these levels may lead to a delay or invalidation of the expected move. Monitoring the retest zone is crucial, as its outcome will likely define the altcoin market’s course in the near future.