- Altcoin market is in a double bottom pattern with MACD bull crossover just as the market did in the altcoin market increase in 2018-2021.
- The $240 billion inflow on a single day is very illustrative of high liquidity, which would explain substantial momentum and follow a pattern of what has been explored on previous massive cycles of inflow.
- Institutional participation and advanced market infrastructure strengthen altcoin trends, suggesting the market is positioned for a potential 15x expansion.
The altcoin market is currently showing technical patterns reminiscent of the 2018–2021 cycle. A double-bottom formation paired with a bullish MACD crossover suggests the market may be positioned for strong upward momentum. Analysts are examining whether a 15x potential cycle could emerge.
Double-Bottom Formation Signals Reversal
The altcoin market cap has carved out a two-step bottom over nearly two years. This formation closely mirrors the accumulation seen in the previous cycle that preceded the 15x rally. A breakout above $1.5 trillion resistance now confirms the reversal pattern.
Merlijn The Trader noted on Twitter: “ALTCOINS JUST LOADED THE SAME SETUP AS 2018–2021. Double bottom locked. MACD flipped green.” The tweet underlines that technical indicators are aligning similarly to the last major expansion.
The momentum indicators now confirm the setup. The MACD has flipped green monthly with a bullish crossover and has obviously developed momentum. This furthermore suggests the market is on course to follow the same trajectory as last cycle, which ultimately led to a historic altcoin blow-off surge.
Historical Precedent and Market Inflows
In 2018-2021, the altcoin market expanded approximately 15x, growing by a total of roughly $1.5 trillion at the end of 2021.. The current market shows a similar technical base and breakout pattern.
Marc Shawn Brown reported that $240 billion was added to the total altcoin market cap on August 23. This level of capital inflow demonstrates robust liquidity, a factor that historically supported strong growth.
Rekt Fencer referenced historical government spending: the $1.4 trillion bill in December 2020 preceded a 700% altcoin market surge. With a $3.3 trillion bill recently passed, the market may experience conditions conducive to another major upward cycle.
Liquidity, Institutions, and Market Readiness
Unlike 2018, the current cycle benefits from larger liquidity and significant institutional involvement. Capital inflows are higher, and infrastructure improvements provide better support for the altcoin market.
The presence of institutional investors and advanced market infrastructure strengthens the potential for a major cycle. These factors, combined with technical patterns, suggest conditions exist for a substantial upward trend.
While nothing is a foregone conclusion, the market’s double-bottom structure, momentum from the bullish MACD, high liquidity, and participants in the institutional arena all show that a strong rally—possibly approaching 15x scale previously witnessed—could materialize.
