The chart suggests that the market capitalization of altcoins outside the top 10 is forming a bullish pattern similar to the previous cycle.
Key similarities:
Fakeout: After reaching the peak of the previous cycle, the market cap declined sharply, breaking the downtrend line, creating the feeling that a bear market had begun. However, this was just a fakeout, and the price quickly recovered and returned to the trend line.
Breakout: After the fakeout, the market cap accumulated and finally broke through the downtrend line, confirming a new uptrend.
Bottom: Before forming the fakeout-breakout pattern, the market cap experienced a period of deep decline, creating a bottom.
If history repeats itself:
The market cap of altcoins outside the top 10 will continue to grow strongly after breaking through the trend line.
The potential price target can be determined by measuring the distance from the bottom to the trend line, then projecting it up from the breakout point.
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