Altcoin market nears critical 1.4T USD resistance, potentially triggering a parabolic Wave 3 breakout in 2024.
Historical Elliott Wave patterns show bullish cycles in 2017 and 2021, mirroring current market conditions.
RSI bullish divergence suggests momentum building, with the market poised for gains if resistance is breached.
Crypto analyst El Crypto Prof predicts the altcoin market is very close to a parabolic breakout. His analysis of the altcoin trend from 2015 to 2024, based on Elliott Wave Theory and the RSI, has set up some very strong historical patterns that strongly indicate that the next bullish phase is coming soon. The analyst points to a critical resistance level near 1.4 trillion USD, a potential threshold for the next wave of growth.
Historical Wave Patterns Point to Potential Upside
In previous cycles, the market has followed distinct bullish phases, beginning with Wave 1 from 2015 to 2017. It was a period of slow gathering of the altcoins, characterizing a rounded-bottom formation into a major breakout in mid-2016. It concluded during the bull run toward the end of 2017, which interestingly coincided with the peak of the crypto market altogether.
Source: El_Crypto_Prof
Similarly, Wave 2 followed a similar path in 2020â2021. After a lengthy consolidation post-2018, the market entered another rounding-bottom phase before a breakout in late 2020. Altcoins then experienced rapid gains until mid-2021, resembling the earlier waveâs behavior.Â
Current Market at Key Resistance
Currently, the altcoin market is consolidating near the resistance level of 1.4 trillion USD, which analysts see as a critical point. El_Crypto_Profâs chart analysis reveals that this level, if breached, could signal the next major move upward. The total market cap for altcoins remains just below this resistance, and a successful breakout could similar the previous cycles.
Moreover, a strong support level exists around the 800 billion USD mark, as indicated by previous market consolidations. This serves as a potential fallback level should the market fail to break above the current resistance.
RSI Signals Bullish Momentum
The RSI shows a clear upward trendline. Despite the consolidation in prices, the RSI has formed higher lows, suggesting bullish divergence. Historically, this type of divergence precedes an upward movement. Currently, the RSI sits between 40 and 60, indicating room for the altcoin market to rally without being overbought.
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