Altcoins Reclaim Trendline That Led To 2021 Explosion, Will History Repeat Itself?

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. The altcoin marketis flashing a familiar signal that preceded its most explosive rallies in the past. After months of uncertainty and price consolidation, a new analysis suggests that altcoins have just reclaimed a critical trendline—the same one that marked the beginning of the 2017 and 2021 bull runs. With market patterns aligning and fractals emerging, analysts are now questioning whether the conditions are once again ripe for a massive altcoin breakout.  Altcoins Eye Vertical Move As Bear Trap Ends

The altcoin market may be on the brink of a historic breakout, according to a recent chart analysis by crypto expert Merlijn The Trader. The analyst draws parallels between the current cycle and those of 2017 and 2021. The analyst’s chart, publishedon X social media, shows that the total altcoin market capitalizationhas reclaimed a long-term ascending trendline that had preceded previous vertical expansions during major bull runs. Related Reading Altcoin Season Not Remotely Close, Bitcoin Dominance Still Too High: Market Expert Says 4 days ago

In earlier cycles, altcoins briefly broke this trendline in what was identified as a “ bear trap” before swiftly reversing and launching into explosive growth phases. Merlijin The Trader reveals that this pattern appears to be repeating in this cycle, as the current market structure mirrors previous setups that triggered rapid valuation increases across the altcoin sector.  Source: Merlijn The Trader on X

The ascending trendlinerecovery is framed within a red box in the chart, consistent with the zones that marked the end of prior downtrends. In each instance, the reclaim was followed by aggressive upward movement, highlighted by green boxes that represented parabolic gains in the total market cap.

  Merlijn The Trader suggests that the recent rebound indicates the completion of another bear trap, signaling renewed bullish momentum. Green arrows placed below the price curve, matching the timing of previous breakouts within the analyst’s chart, imply that the altcoin market could be preparing for another phase of expansion. If the historical fractal holds, the analyst forecasts a sharp vertical rally for altcoins, with valuations possibly reaching the $10-$16 trillion range.  Altcoin Market Mirror 2016-2018 Breakout Setup

In another fresh analysis, Merlijn The Trader notedthat the altcoin market cap is showing signs of repeating a historical patternthat previously led to a major bull rally. A comparison between the 2016-2018 market cycleand the current one reveals an almost identical structure playing out, albeit on a much larger scale.  Related Reading Bitcoin Dominance Holds Altcoin Season At Bay, Analyst Says No Upside Until This Happens 1 week ago

The market appears to have formed a Double Bottom, followed by a mid-cycle correction and consolidation within a descending broadening wedge pattern. This same fractal unfolded before the explosive altcoin rally in 2017. The analyst’s chart also illustrates that in the previous cycle, altcoins broke out of this same wedge pattern, resulting in a massive surge in market capitalization, which he referred to as “Pump 2.0”. 

With the same breakout now confirmed for this cycle’s market structure, Merlijn The Trader predicts that the altcoin sector may be entering its next parabolic expansion phase. This development could mark the end of the altcoin market’s current bear phase and the beginning of a second macro pump similar to what occurred between 2017 and early 2018. Overall crypto market cap excluding BTC at $1.15 trillion | Source: TOTAL2 on Tradingview.com Featured image from Unsplash, chart from Tradingview.com