The altcoin market could be entering a decisive phase. According to analyst Merlijn The Trader, the total market capitalization of altcoins excluding $BTC and $ETH is setting up a classic cup and handle technical pattern on a five-year timeframe. The “cup” extends from the previous cycle highs, near $1.15 trillion, to the bear market low at the end of 2022, when it fell to around $295 billion. Since then, the market has recovered key levels in 2025, validating relevant technical zones and showing signs of a gradual return of buyer momentum.
The 'handle' of this formation is expected to develop during the current year, with a consolidation phase marked by lateral movements between 900,000 million and 1 trillion dollars. For Merlijn The Trader, this behavior represents the 'calm before the storm,' anticipating a possible large upward movement once the breakout is confirmed. However, this scenario will depend on the macroeconomic context: less restrictive monetary policies and a greater appetite for risk assets could act as catalysts. If these conditions are met, altcoins could feature one of the most dynamic phases of the cycle, recapturing the attention of traders and investors alert to market signals.
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