Altcoin market mirrors 2020 rally after breaking a three-year inverse head and shoulders, signaling a potential parabolic uptrend.
Structural repetition and bullish volume patterns suggest altcoins are in a continuation phase following historic resistance breakout.
TOTAL3 breakout above neckline with confirmed accumulation zones indicates the altcoin market is entering a new macro bullish cycle.
According to analyst Moustache, the altcoin market is flashing a strong bullish signal following a significant breakout in the TOTAL3 chart. This chart tracks the total market capitalization of all altcoins excluding Bitcoin and Ethereum. It recently broke above a three-year inverse head and shoulders pattern, signaling a structural shift in macro market behavior. The retest is already complete. Now, the market is entering a continuation phase that mirrors the explosive rally of 2020–2021.
Repetition of Macro Cycle Patterns
The chart shows that the altcoin market experienced two major inverse head and shoulders patterns. The first occurred between 2018 and 2020. It formed a clear neckline that was broken in mid-2020. Following this breakout, the market surged and peaked in late 2021. A similar pattern unfolded between 2022 and 2023. This time, the neckline broke in early 2024, triggering another rally.
Source: Moustache
Additionally, both breakouts happened just after long periods of sideways consolidation. Each bullish phase began with volume spikes and clear momentum shifts. Moreover, both formations share identical structure and behavior. Each pattern formed a rounded bottom, then broke out above a critical resistance trendline that dates back to 2018.
Accumulation Zones Mark Uptrend Readiness
Yellow highlighted zones show accumulation phases in both 2020 and 2024. These areas appeared right after prices broke long-term resistance. Following accumulation, the market experienced strong upward momentum, validating the bullish continuation. Furthermore, the orange ovals on the chart mark the early stages of the next parabolic leg. This phase is now underway.
Consequently, the second half of 2023 through early 2025 is behaving just like 2020–2021. Altcoins are steadily gaining strength above key resistance levels. The neckline, previously a ceiling, is now acting as a support. Besides, the textbook pattern inset in the chart confirms the accuracy of these formations.
What’s Next for Altcoins
Altcoins now trade in a strong continuation zone. This follows the completed retest and breakout of a historic neckline. Hence, the market is poised for a parabolic move. Moreover, volume and momentum confirm this bullish trajectory.
The post Altcoin Market Primed for Parabolic Rise After Key Breakout appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
