Crypto traders are increasingly focusing on altcoins as technical indicators suggest a possible revival of previous market patterns. Market analyst Merlijn the Trader has showcased a chart that purports to unveil an “identical” structure forming in 2025, akin to the significant rallies experienced in 2023 and 2024.
The total altcoin market cap has been operating within a rising channel for the past two years, according to analysis. Each time liquidity builds near the lower boundary of this channel, it leads to sharp upward movements known as “altcoin seasons.” This pattern was evident in both late 2023 and mid-2024, each time adding hundreds of billions of dollars to the sector.
Currently, this same setup appears to be emerging in 2025. If the trend continues, it may indicate the altcoin market is poised for another parabolic ascent, pushing valuations towards the upper range of the channel, estimated at around $2.4 trillion.
Merlijn emphasizes that liquidity flows are crucial in driving these cycles. When Bitcoin remains stable or consolidates, capital tends to rotate into smaller altcoins, leading to rapid price increases. He cautioned that neglecting these recurring patterns could result in traders “chasing green candles instead of riding them.”
For investors, this situation presents both opportunities and risks. While altcoin rallies have historically been substantial, they are typically short-lived, often culminating in swift corrections. Traders monitoring this potential third leg may find September and October to be pivotal months for assessing market momentum.
If the channel structure remains intact, 2025 could witness yet another compelling altcoin season, continuing a cycle that has significantly transformed the broader crypto marketplace over the last two years.
