Altcoin market recovery signal: key trend line reclaimed, historical bull run precursor reappears

The cryptocurrency market flashes familiar signals, suggesting that altcoins may be迎来爆炸性上涨行情. After months of uncertainty and price consolidation, the latest analysis shows that the total market capitalization of alts has successfully recovered a key long-term rise trend line. It is noteworthy that this trend line is the iconic starting point before the bull runs of alts in 2017 and 2021. As market patterns converge and historical fractals reappear, analysts are closely watching: does the current market environment once again possess the conditions to trigger a large-scale altcoin explosion?

Alts are about to pump? The "bear market trap" may have ended

According to the latest chart analysis by crypto expert Merlijn The Trader, the altcoin market may be on the verge of a historic breakthrough. The analyst points out that the current market cycle bears significant similarities to the 2017 and 2021 cycles. The chart he posted on social platform X clearly shows that the total market capitalization of alts has once again risen above a long-term rise trend line. This trend line has played a key leading role during the vertical expansion phase before the major bull runs in the past.

In the past cycles, alts have briefly broken below this trend line, forming what is known as a "Bear Trap", and then quickly reversed to initiate explosive growth. Merlijn The Trader reveals that the current market structure is precisely replicating this pattern, mirroring the previous formation that triggered a rapid surge in the valuation of the altcoin sector.

In the chart, the recovery of the trend line is marked in the red box area, which is consistent with the previous end of the market downtrend interval position. After each recovery, the market is accompanied by strong rising momentum, highlighted in the chart with a green box representing parabolic growth.

Merlijn The Trader believes that the recent rebound marks the completion of another "bear trap", indicating that a new bullish momentum has begun. The green arrows marked below the price curve in the chart coincide perfectly with historical breakout points, suggesting that the altcoin market may be gearing up for a new expansion period. If the historical fractals continue to hold, this analyst predicts that alts will experience a sharp vertical rise, with the total market capitalization valuation potentially hitting 10-16 trillion dollars.

The total market capitalization of alts perfectly maps the breakout structure from 2016 to 2018

In another new analysis, Merlijn The Trader pointed out that the total market capitalization of alts is showing signs of repeating historical patterns that previously led to a massive bull run. Comparing the 2016-2018 market cycle with the current cycle, it can be observed that an almost identical structure is unfolding, although on a larger scale.

The market seems to have formed a Double Bottom pattern, subsequently undergoing a mid-cycle adjustment and consolidating within a Descending Broadening Wedge. This same set of market fractals played out before the explosive altcoin bull run of 2017. Analysts' charts also show that in the previous cycle, alts successfully broke through the wedge pattern, triggering a massive surge in market capitalization, which he referred to as “Pump 2.0.”

With the current cycle confirming the emergence of the same wedge breakout, Merlijn The Trader predicts that the altcoin sector may be entering its next parabolic expansion phase. This development could signal the end of the current bear market phase for alts, as well as the onset of a macro-level surge similar to the second massive rally from 2017 to early 2018.