- The altcoin and total market caps are forming a "cup and handle" pattern, suggesting a bullish setup.
- A breakout above $900 billion in the altcoin market cap could signal the start of a new altseason.
- Traders are closely monitoring resistance levels for potential gains in smaller cryptocurrencies.
Cup and Handle Pattern Points to Altcoin Surge
It can be seen from the above chart that cup and handle formation, especially in altcoin as well as the total market cap chart, are well defined and have been regarded by technical analysts as a bullish pattern set up. It usually develops during a building process where the price comes down and then up, and creates a rounded base or a ‘cup’, followed by a short period of consolidation or a retreat or retracement which is the ‘handle’. As such, for altcoins, this pattern indicates that another large price increase may be expected as the market is currently gently probing the upper limit of the handle.
Potential for "Altseason" and Key Levels to Watch
As altcoins approach a breakout situation analysts suggest paying more attention to the resistance and support on the charts. Currently, the altcoin market cap is approximately $880,000,000,000 and approaching this $900B point can be a state that activates the further evolution of the market.