The crypto market demonstrates readiness for a new uptrend paralleling previous historical periods. Analysis shows similarities between the cycles of 2014-2018 and 2018-2025.
Analogy with Previous Cycles
The overall market capitalization of the crypto market is carving a bullish trend akin to previous macro cycles. Analyst Moustache highlights a striking resemblance between the 2014-2018 and 2018-2025 periods. These two cycles share common technical structures suggesting the market is in a healthy continuation phase.
Key Structural Similarities
The 2018-2025 cycle has followed a similar roadmap. Following a deep correction, the market formed a rising support trendline. Price broke above a critical resistance level in 2020, resembling the 2016 breakout. The first retest flipped resistance into support, a classic bullish signal.
Continuation Phase of the Trend
Volume profiles and price momentum affirm the trend’s strength. Each breakout initiated gains followed by short consolidations that built strong bases for upcoming moves. The market currently stands above multi-year support, a crucial technical milestone.
Considering the current market conditions and historical analogies, a new bullish cycle seems possible, instilling optimism among crypto market participants.
