- The analysts have pointed to the formation of a descending broadening wedge in the altcoin market, which suggests a bullish pattern.
- The altcoin market is currently in contact with a support trendline that has been respected over the years and triggered sharp rebounds, confirming the bullsβ opinion.
- Bullish formations indicate potential for an increase in value; however, due to the unpredictability that comes with them, investors should remain skeptical.
Renowned analysts in the cryptocurrency market have pointed out increasing bullish formations in the altcoin market, thus providing hope for an uptrend. More focus has been placed on specific technical indicators that indicate that the demand for altcoins may soon experience a massive explosion.
One particular Moustache called a descending broadening wedge, is among the distinguished patterns found on the charts. Unfortunately, this formation is emerging just below the 2021 ATH resistance level in the total capitalization of the altcoins.
Historically, this setup has been considered bearish, as it suggests that the market is preparing for a significant upward movement. Moustache’s argument also acknowledges that while markets rarely replay history, they emulate a pattern, and the market’s current structure matches previous ones.
Market Sentiment and Long-Term Support
Such trends have confirmed the existence of these bullish patterns and caught the attention of the extended cryptocurrency community. Investors are eagerly waiting for other events that can support these analystsβ forecasts. The combination of the descending broadening wedge and the long-term support trendline is considered a powerful signal that should lead to a fresh wave of upward movement in the altcoin market.
Another respected analyst, Mags, has been targeting a long-term ascending triangle, or demand zone, that has supported the altcoin market since 2017. Mags believes the market cap is testing this, which is the primary support that has triggered robust rebounds.Β
As illustrated by the trendline, the positioning has remained relatively intact over the last seven years, which could signal that altcoins will hit a higher high if this is the case. The rebound from the lower band of an evident support level reinforces the anticipation for an upside reversal of an altcoin trend.
However, as highlighted above, it would be pertinent to remain cautious as cryptocurrency markets are characterized by high volatility and no predictable results. This, however, has left analysts on the view that while the established patterns indicate the breakout tendency, many factors can alter the market direction
