- Crypto market breaks out from inverse head and shoulders, signaling a bullish trend above the $2.6 trillion neckline.
- The projected crypto market cap target is $9.34 trillion, indicating potential for nearly 4x growth from current levels.
- Sustained demand and strong volume support the bullish momentum, with $2.6 trillion as a critical support level.
The total cryptocurrency market capitalization has completed a major bullish pattern. It has broken out from an inverse head and shoulders (iH&S) formation. The breakout occurred at the $2.6 trillion neckline, signaling strong upside momentum. Historical price behavior suggests a potential surge to $9.34 trillion. This projection represents almost a 4x increase in total market cap.
Inverse Head and Shoulders Breakout Confirmed
The iH&S pattern is a reliable reversal indicator. It forms when a market trends downward, finds a bottom, and reverses. The pattern consists of three key points: the left shoulder, the head, and the right shoulder. In this case, the left shoulder formed during a price decline, followed by a deeper drop forming the head. The right shoulder then developed as the market stabilized and recovered.
Breaking above the neckline at $2.6 trillion confirmed the pattern. More importantly, a successful retest turned this resistance into new support. The price has held above this level, indicating strong buying pressure. Moreover, historical data shows that such formations often lead to sustained bullish momentum.
Massive Upside Potential
The projected target for this breakout is $9.34 trillion. This target is derived by measuring the vertical distance from the head to the neckline and extending it upward. Such price movements have occurred in previous market cycles. Hence, traders and investors anticipate significant expansion in crypto valuations.
Besides, monthly candlesticks indicate sustained demand. Consequently, the market continues to exhibit bullish strength. Additionally, volume analysis typically supports such breakouts, confirming trader participation. If volume increases, the market could rally toward its projected target more rapidly. However, sustaining above $2.6 trillion is crucial. If the price dips below, a retest of previous support levels may occur. Yet, as long as this support holds, bullish sentiment remains dominant.
