Does history repeat itself? Analysis of #Altcoin market trends
In December 2017, altcoins reached an all-time high, followed by a sharp correction of 50%. Despite this drop, the market soon began a massive recovery, with the total market capitalization of altcoins increasing by about 200% from its low, peaking on January 5, 2018.
Fast forward to the current market: altcoins are experiencing a correction of 25%. If historical patterns hold, the correction may deepen until the market finds short-term support near the 200-day EMA. This could lead to a brief bounce ('dead cat bounce') before further decline to stronger support levels, around $580–590 billion in total market capitalization. Such a move would coincide with the 50% correction observed in 2017.
If the market establishes a solid base at this level and repeats the trend of 2017, subsequent growth could lead to a 190% increase in altcoin capitalization, raising the total market capitalization to approximately $1.7–1.8 trillion.