The weekend trading was mostly flat as Bitcoin maintained a sideways trend. Meanwhile, most altcoins also followed the star cryptocurrency and maintained a consolidation trend with a low chance of reversing the current trend. However, the current trend may not last long as altcoins are giving huge bullish signals, indicating a strong chance of a bullish breakout soon.
The altcoin market cap has been consolidating inside a descending wedge for more than a year since it hit a high during the 2021 bull run. Although bulls have tried to reverse the trend, it has resulted in lower highs in the downtrend. After flowing along the established path, the market cap has encountered a decisive phase, and the probability of a bullish breakout is higher.
The total market capitalization excluding Bitcoin is struggling to form a bullish wave above a crucial overhead resistance. Meanwhile, the trend has been met with bearish action that may ease soon. With the altcoin market capitalization trading above both the 21-day weekly MA and the 200-day weekly MA levels, the possibility of a bullish breakout in the altcoin market is imminent.
In the last cycle, the pair formed a double bottom pattern which was followed by an impulsive bullish wave. Moreover, the rally also witnessed a mid-cycle correction and a second impulsive bullish wave. Currently, the current cycle has met the first three criteria and appears to be at the end of a mid-cycle correction. As the trend is at the foothills of a breakout, a second impulsive bullish wave could be around the corner.
Despite the bullish breakout, the altcoin market cap must cross the $679.3 billion threshold to achieve a decent rise towards new highs.