Analysts Forecast Major Altcoin Rally as Market Tests Key 5-Year Support

  • Charts from market watchers signal a major altcoin rally is near.
  • Altcoins sit at a 5-year trendline, indicating strong support.
  • Analysts predict a potential $3 trillion altcoin market by 2025.

Altcoin investors have reason to be optimistic, as a new analysis by a crypto analyst, Moustache, suggests that the market is on the brink of a significant rally. In a detailed chart analysis, Moustache highlights that altcoins are currently sitting on a trendline that has been in place for five years. 

This trendline, combined with the altcoin market reaching the bottom of the Keltner Channel, could be signaling the start of a new altcoin season, similar to previous cycles in 2020 and 2021. 

A Rare Opportunity in the Altcoin Market

Moustache’s chart analysis reveals that this scenario has occurred three times in the past, with each instance followed by a rapid market rise in the months that followed. 

The trendline has acted as a key support level, and the current position of altcoins suggests that another opportunity for growth is emerging—an opportunity that Moustache describes as one that “only arises every few years.”

This analysis is supported by historical patterns. Altcoins have consistently bounced off the trendline, leading to significant rallies during all seasons. The chart marks previous lows in 2019, 2020, and 2023, with each low preceding a major upward move in the altcoin market.

Altcoins Set to Reach $3 Trillion Market Cap by 2025

Further reinforcing the positive outlook, another crypto analyst, Bull.bnb, has forecasted that the altcoin market cap could reach $3 trillion by March 2025. This projection follows a pattern of expansion seen in previous bull markets. 

In 2017, the altcoin market peaked at around $300 billion, followed by a peak of $1 trillion in 2021. If the pattern holds, the next bull market could see the altcoin market cap reach $3 trillion, marking another massive growth phase.

However, Bull.bnb also cautioned investors about market volatility and the need for careful risk management. In his words, “Great days are ahead. Just don’t get wiped.” 

In a separate analysis, well-known crypto analyst Michael Van de Poppe pointed out that the altcoin market capitalization is currently down 60% from its all-time high, while Bitcoin is only down 15%. 

This disparity suggests that altcoins have considerable upside potential as the market begins to recover. Van de Poppe’s analysis aligns with the overall sentiment that the altcoin market is due for a rebound, with significant gains still to come.

End of Post-Halving Capitulation is Near 

MikybullCrypto, an analyst on X, adds to the growing optimism by highlighting that the post-halving capitulation phase is nearing its end. Historically, the cryptocurrency market has experienced strong rallies after Bitcoin halving events, and this time is expected to be no different. According to MikybullCrypto, the next wave of the altcoin rally could be massive. 

Mags, another respected analyst, points to the altcoin market cap testing a long-term trendline that has acted as a solid support zone for the past seven years. Each time the market has tested this support, it has led to a significant pump in altcoins.

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Source: https://coinedition.com/analysts-forecast-major-altcoin-rally-as-market-tests-key-5-year-support/