Following the latest cryptocurrency market adjustments, the optimistic outlook of some investors and market observers seems to have diminished, with numerous individuals asserting that the apex has been reached. Nevertheless, other experts indicate that multiple indicators do not yet suggest a cycle high, hinting that the bull still possesses some momentum.
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Crypto Market Capitalization Reassesses Significant Level
The cryptocurrency market has recently experienced ongoing adjustments that have interrupted the earlier momentum post-US elections. During the rally in November and December, the sector reached several significant achievements, including Bitcoin’s breakthrough beyond the $100,000 threshold for the first time ever.
The crypto market also exceeded its all-time high (ATH) from 2021, achieving a market capitalization of $3.73 trillion on December 17, 2024. However, its recent decline caused the total crypto market cap (TOTAL) to drop to its lowest level in almost three months.
On Monday, the market fell back to the $2.8 trillion mark, momentarily losing the critical $3 trillion support threshold before rebounding. Market analyst Daan Crypto Trades pointed out that the TOTAL chart revisited the 2021 ATH during the pullback, transforming the weekly candle “into quite an intriguing one.”
The trader elaborated that holding the $3 trillion mark is vital moving forward, despite the chart indicating “substantial demand for the time being.” Meanwhile, the $3.7 trillion mark continues to serve as the primary resistance level, as it is “what stands in the way of additional upward movement.”
Daan also observed that the Altcoins market capitalization, which omits Bitcoin and Ethereum, reached the 2024 peaks and rebounded after briefly exiting its current range during the market correction, which may imply that the anticipated altseason is still imminent.
He emphasized that Altcoins may continue to move laterally within their present range, but a breakout could lead them to test the December highs, as they have yet to properly surpass their 2021 ATH.
Potential Cycle Top in Q4?
Analyst Sjuul from AltcryptoGems shared an evaluation of the total crypto market chart. The analyst mentioned that he fails to see the “warning signs” that other investors and market observers have highlighted online.
From a technical standpoint, the crypto market’s upswing is a “clear support and resistance scenario,” particularly since it flipped the 2021 ATH level, which the market is currently maintaining.
Sjuul compared the current cycle to the previous one, arguing that it technically marks the start of the “true bull run.” Chronologically, the chart exhibits various parallels between the two cycles, indicating that the peak is around 230 days away.
He articulated that the 2021 breakout from the previous cycle’s peak occurred 1,120 days following the 2017 ATH. Furthermore, the 2021 cycle peak took place 1,400 days after the 2017 summit.
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Simultaneously, this cycle’s breakout from the 2021 ATH transpired roughly 1,120 days post-peak, similar to the previous cycle. Should history repeat, this cycle’s timing suggests that the crypto market high is approximately 7-9 months away.
Ultimately, the analyst anticipates the market peak occurring in Q4 2025, potentially reaching a market capitalization of $4.5 trillion.
Featured Image from Unsplash.com, Chart from TradingView.com