The altcoin market is showing signs of a potential breakout that could lead to the start of a new altcoin season in 2025. Investors are closely monitoring current technical setups observed in 2019, 2020, and 2021.
Current Altcoin Market Situation
The bi-weekly chart shows the Total2/Total Market Cap (excluding Bitcoin) approaching a critical resistance zone. Significant rallies have followed short-term price corrections, indicating gradual capital absorption in the market.
Historical Patterns and Expectations
According to historical patterns, the current setup could trigger a 2025 altseason as investors diversify their portfolios in various DeFi projects. Bitcoin has also shown signs of weakness near the psychological $100k mark.
Potential Scenarios for Altcoins
If the current setup leads to a breakout with volume, the market could see 2x-10x gains as altcoin bulls rally. However, rejection near this zone could lead to a consolidation phase as altcoins await the next attempt. Cautiously monitoring the current setup may provide deeper insights into the next moves in the altcoin market.
In conclusion, the altcoin market is at a crucial stage, and upcoming events may define its future dynamics. Investors should pay attention to current trends and patterns as they could point to possible future trends.
