The altcoin market may see a major breakout in 2024, following patterns similar to past surges in 2017 and 2021.
The "cup and handle" pattern signals strong growth, with projections suggesting a potential $1.86 trillion market cap.
Historical cycles show that after consolidation, rapid altcoin growth could lead to another parabolic rally in 2024.
The cryptocurrency market is promising growth in altcoins. Analysis shows patterns resembling historical trends like the formation of a “cup and handle” structure. This pattern, known for its continuation trends, suggests a strong potential for a breakout. Furthermore, historical movements point to recurring parabolic growth cycles, with past surges in 2017 and 2021 setting the stage for another explosive rally.
Historical Patterns and Market Behavior
In 2017 as per crypto analyst Moustache, the market experienced its first parabolic rise, characterized by rapid growth followed by a sharp correction. Similarly, in 2021, another significant uptrend occurred, with extended bullish momentum culminating in a correction phase. These cycles indicate the market’s tendency for rapid expansion before entering consolidation phases.
Source: Moustache
Currently, the market cap for altcoins sits in a consolidation phase. There is a breakout from a descending triangle pattern, often a precursor to strong upward momentum. This aligns with previous patterns, suggesting a continuation of the market’s historical behavior.
Cup and Handle Formation Points to Growth
Additionally, the “cup and handle” structure adds to the bullish according to analyst Titan of Crypto. The cup represents years of market stabilization and accumulation. Its rounded shape reflects a gradual recovery in sentiment, setting the stage for growth. The handle formation shows a brief consolidation period, allowing for further momentum to build.
The breakout point from this pattern lies near a horizontal resistance level. Beyond this point, the market targets a projected value of $1.86 trillion. This target aligns with the cup’s depth and historical trendlines from 2018, reinforcing the chart's validity.
Source: Titan of Crypto
Key Indicators and Future Expectations
Besides technical patterns, the market exhibits alignment with long-term resistance levels. This consistency with historical trends bolsters confidence in the anticipated breakout. Projections for 2024-2025 suggest another parabolic curve, with market movements coping with prior explosive cycles. Investors may anticipate growth in altcoins. The alignment of technical formations, long-term trends, and historical patterns signals a strong potential for substantial upward movement.
The post Analysts Predict Breakout with Cup and Handle Formation, Is a Big Altcoin Boom Coming? appeared first on Crypto News Land.