Following a significant correction, altcoin market caps are swiftly rebounding as bitcoin approaches its recent all-time high, prompting altcoins to vie for breakout opportunities.
Altcoin Market Cap Trending Bullishly
Similar to bitcoin’s ascent towards its bull flag’s peak, altcoins are mirroring this trajectory as the combined market cap of cryptocurrencies excluding bitcoin heads towards the top of its own bull flag. A potential upward move could propel altcoin market caps from the current $1 trillion level to an estimated $1.68 trillion.
Bullish Cup and Handle Pattern Emerges
Examining the weekly timeframe reveals a promising cup and handle pattern formation for altcoins, with the ongoing correction phase contributing to the handle’s formation. A breakout from the bull flag and a move towards resistance at $1.26 trillion could validate the cup and handle pattern, potentially doubling altcoins’ combined value to $2.1 trillion.
Altcoin Market Cap Projections
Considering $2.1 trillion as a conservative estimate for altcoin market caps, fibonacci extensions suggest further targets: $2.5 trillion at the 1.618 fibonacci level, $3.8 trillion at the 2.618 level, and a notable $5 trillion at the 3.618 level.
However, it’s essential to note that markets fluctuate, and corrections are inevitable. The current altcoin correction, around 29%, underscores the volatility of these markets. Traders should exercise caution, as market unpredictability remains high.
