Altcoins: The Great Escape from the Bear Trap 🐻🚀

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It is with a sense of profound relief and a touch of bewilderment that the altcoin market has once again found itself in the enviable position of flashing a signal that would make a lighthouse envious. After months of what can only be described as a financial version of a catnap, a new analysis suggests that our dear altcoins have reclaimed a critical trendline. This very trendline, dear reader, is the same one that marked the beginning of the 2017 and 2021 bull runs, which were as explosive as a fireworks display on the Fourth of July.

Altcoins Eye Vertical Move As Bear Trap Ends

According to the crypto expert, Merlijn The Trader, the altcoin market may be on the brink of a historic breakout. The analyst, who is as sharp as a tack and twice as witty, draws parallels between the current cycle and those of 2017 and 2021. His chart, published on X social media, shows that the total altcoin market capitalization has reclaimed a long-term ascending trendline that had preceded previous vertical expansions during major bull runs. It’s like the altcoins have finally found the key to the bear trap and are now eyeing the exit with a gleam in their digital eyes.

In earlier cycles, altcoins briefly broke this trendline in what was identified as a “bear trap” before swiftly reversing and launching into explosive growth phases. Merlijn The Trader reveals that this pattern appears to be repeating in this cycle, as the current market structure mirrors previous setups that triggered rapid valuation increases across the altcoin sector. It’s as if the altcoins are saying, “Here we go again, folks!”

The ascending trendline recovery is framed within a red box in the chart, consistent with the zones that marked the end of prior downtrends. In each instance, the reclaim was followed by aggressive upward movement, highlighted by green boxes that represented parabolic gains in the total market cap. Merlijn The Trader suggests that the recent rebound indicates the completion of another bear trap, signaling renewed bullish momentum. Green arrows placed below the price curve, matching the timing of previous breakouts within the analyst’s chart, imply that the altcoin market could be preparing for another phase of expansion. If the historical fractal holds, the analyst forecasts a sharp vertical rally for altcoins, with valuations possibly reaching the $10-$16 trillion range. It’s enough to make one’s head spin!

Altcoin Market Mirror 2016-2018 Breakout Setup

In another fresh analysis, Merlijn The Trader noted that the altcoin market cap is showing signs of repeating a historical pattern that previously led to a major bull rally. A comparison between the 2016-2018 market cycle and the current one reveals an almost identical structure playing out, albeit on a much larger scale. The market appears to have formed a Double Bottom, followed by a mid-cycle correction and consolidation within a descending broadening wedge pattern. This same fractal unfolded before the explosive altcoin rally in 2017. The analyst’s chart also illustrates that in the previous cycle, altcoins broke out of this same wedge pattern, resulting in a massive surge in market capitalization, which he referred to as “Pump 2.0”.

With the same breakout now confirmed for this cycle’s market structure, Merlijn The Trader predicts that the altcoin sector may be entering its next parabolic expansion phase. This development could mark the end of the altcoin market’s current bear phase and the beginning of a second macro pump similar to what occurred between 2017 and early 2018. It’s a thrilling prospect, isn’t it? 🚀

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2025-07-09 03:05