• Altcoin market eyes second weekly close above the SMA20 line, which could start another bullish momentum.

• The 2023 double-top formation highlights key market peaks, adding $463 billion to altcoin market capitalization.

• Moving averages continue to act as critical support and resistance, shaping altcoin market trends since 2019.

Crypto analyst el_crypto_prof says that the last time the altcoin market closed above its weekly Simple Moving Average (SMA) 20 line was a year ago, which resulted in a 140% rise. Now, the market is on the verge of its second weekly close above this important indicator. If this occurs, it could lead to a shift in market momentum.

Historical Market Cycles from 2019 to 2024

The altcoin market has witnessed multiple cycles of growth and correction since 2019. In early 2019, the market bottomed and quickly rallied, gaining over 136%, marking the start of a new uptrend. This was followed by a notable correction in mid-2019. 

Source: el_crypto_prof

By late 2020, after an accumulation phase, another breakout rally took place, pushing the market up by an impressive 1,779% in 2021. This massive rally coincided with record highs for many altcoins. However, a sharp correction followed in mid-2021, signaling the start of a broader downtrend.

Recent Market Trends and Support Levels

As the market recovered in 2023, a new rally began, with the altcoin market experiencing an 80% rise mid-year. Notably, 2023 showed a double-top formation, indicating two peaks. The market surged by 139% in the latter half of 2023, adding nearly $463 billion in market capitalization. 

Moving averages played a crucial role during this period, providing support during bullish phases and acting as resistance in times of correction. The blue moving average line, in particular, has marked pivotal points where the market found support before resuming its upward trend.

What’s Next for 2024?

The current market trend suggests consolidation near key resistance levels. The altcoin market is now testing the support provided by the moving average line. If this level holds, history indicates the possibility of another breakout, following patterns observed in previous years. 

However, should the market break below the moving average, it could lead to further declines. The yellow highlights in the chart suggest that 2024 might be a critical year for determining the market’s next move. Holding support here could lead to substantial gains, while failing to do so may trigger a deeper correction.