- Altcoins form a 4-year falling wedge pattern.
- Monthly MACD shows early bullish signs.
- A major trend reversal could be underway.
The altcoin market appears to be approaching a critical point after spending more than four years forming a massive falling wedge pattern. This technical setup often signals an upcoming bullish reversal, especially when it forms over such an extended period. Traders who have been betting against altcoins during this phase might soon face a major shift in momentum.
A falling wedge pattern typically occurs when prices consolidate between two downward-sloping trend lines. As the range tightens, selling pressure weakens, and a breakout to the upside often follows. The fact that this pattern has taken four years to develop adds weight to its potential significance.
MACD Adds to the Bullish Outlook
Adding to the optimism is the monthly MACD (Moving Average Convergence Divergence) indicator, which is showing early signs of turning bullish. The MACD line is close to crossing above the signal lineβa move that historically has marked the beginning of strong upward rallies in the altcoin market.
If this crossover occurs in the coming weeks, it could confirm the start of a new bullish phase. Many analysts view this combination of a long-term wedge pattern and an improving MACD as a powerful signal that altcoins might soon outperform Bitcoin and other major assets.
MACD Adds to the Bullish Outlook
Adding to the optimism is the monthly MACD (Moving Average Convergence Divergence) indicator, which is showing early signs of turning bullish. The MACD line is close to crossing above the signal lineβa move that historically has marked the beginning of strong upward rallies in the altcoin market.
If this crossover occurs in the coming weeks, it could confirm the start of a new bullish phase. Many analysts view this combination of a long-term wedge pattern and an improving MACD as a powerful signal that altcoins might soon outperform Bitcoin and other major assets.
What Traders Should Watch Next
Investors should keep an eye on trading volumes and resistance levels as the market tests the upper trendline of the wedge. A confirmed breakout with rising volume could attract significant capital inflows, potentially marking the start of a new altcoin season.
While short-term volatility remains, the technical picture for altcoins is increasingly leaning toward a bullish breakout scenario.
