The altcoin market is flashing a bullish signal against Bitcoin. According to analyst Javon Marks, the total altcoin market capitalization relative to Bitcoin has cleared a multi-year descending triangle pattern, suggesting a possible repeat of the 2021 altcoin rally. The chart he shared tracks the ratio from 2018 to 2027, revealing two major triangular formations. The first triangle peaked in 2018 and broke out in mid-2020, leading to the massive 2021 season. The second triangle formed after the 2021 peak, characterized by lower highs and strong horizontal support.
Descending Triangle Breakout and Volume Patterns
Toward late 2024 or early 2025, the ratio pushed above the falling resistance line, initiating the early stages of another positive cycle. Market participants are now scrutinizing whether higher levels above the resistance zone will be sustained. Add to that: during both consolidation periods, trading volume gradually dropped, reflecting indecision before major directional moves. When breakouts occurred, trapped capital rushed in, accelerating momentum. The current ratio has already breached the critical resistance level, aligning with the setup seen before the 2021 altcoin surge.
Practical Strategies from Stockmoney Lizards
Analyst Stockmoney Lizards offers actionable advice. He recommends focusing on established altcoins such as INJ, HYPE, XMR, and BCH, rather than chasing meme tokens. “I don’t want to sound like a broken record, but fortunes are built at the bottom,” he said. Lizards emphasizes dollar-cost averaging (DCA) below key levels, scaling positions carefully, and keeping a “moon bag” for potential windfall gains. By managing risk and avoiding overdiversification, investors can navigate volatile markets while positioning for strong recoveries.
While the technical and volume patterns point to a possible altcoin resurgence, experts caution that confirmation is still needed before full conviction.