Analyst Predicts Altseason Breakout as Institutions and Historic Patterns Align

Analyst notes a 2023 double bottom pattern, historically linked to exponential altcoin rallies in past cycles.

Ash Crypto notes $3.65T–$3.7T as a key support, with resistance at $3.91T influencing the next market direction.

Institutional players like BlackRock and Fidelity now add trillions in liquidity, a key change from past cycles.

Altcoins new technical setups and institutional activity that could influence the next cycle. The broader altcoin market has recently shown resilience, with key structures forming that resemble earlier phases of major rallies

Analysts note both long term fractals and short term technical zones that could determine the immediate move. With institutions now actively involved and on-chain infrastructure more developed, comparisons with previous cycles have increased.

Historic Double Bottom Structures Reappear

According to analyst Merlijn The Trader, a double bottom has again formed on the altcoin market chart, a recurring bullish structure. In 2015, this pattern preceded a surge of nearly 996 times, while in 2019 a similar setup led to a 150x rally by 2021

Total 2 1-week price chart, Source: Merlijn The Trader on X

The latest double bottom formed around 2023, following a prolonged bear market, and recovery momentum has since been observed. The altcoin market cap is near $1.58 trillion, with the chart indicating a green circle as a breakout marker. Historical precedent shows that such bases often initiated exponential growth, with projections now suggesting a potential multi trillion dollar range of $8 trillion to $18 trillion.

Key Support Zones and Short Term Momentum

While long term fractals set the tone, near term signals also add weight to the bullish narrative. Ash Crypto noted that the altcoin market recently bounced from $3.65 trillion to $3.7 trillion after retesting this key zone

Crypto Total Market Cap Excluding Stablecoins price chart, Source: Ash Crypto on X

This range previously acted as resistance in July, but it has now flipped into support. Candlestick patterns have shown multiple long wicks near this level, indicating strong buying pressure. Higher highs and higher lows further support momentum, keeping the focus on immediate resistance near $3.91 trillion.

Institutions and Liquidity

Adding to technical setups, Merlijn The Trader emphasized that conditions differ from 2017 and 2021 due to institutional involvement. Firms such as BlackRock and Fidelity are now part of the market, bringing potential liquidity in the trillions

Combined with expanding on-chain infrastructure, this distinguishes the current cycle from earlier retail driven phases. Should the market hold its $3.65 trillion support and build on historical double bottom precedents, analysts suggest that altcoins could advance toward the $4.1 trillion to $4.2 trillion range.

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