In earlier cycles, altcoins briefly broke this trendline in what was identified as a \u201cbear trap\u201d before swiftly reversing and launching into explosive growth phases. Merlijin 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.\u00a0<\/p>\n
![\"Altcoin\"](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2025\/07\/Altcoins-chart-from-Merlijn-The-Trader.jpg?w=512&resize=512%2C331\")
<\/p>\n
The 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.<\/p>\n
\u00a0Merlijn 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\u2019s 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<\/a>, with valuations possibly reaching the $10-$16 trillion range.\u00a0<\/p>\n In another fresh analysis, Merlijn The Trader the 2016-2018 market cycle and the current one reveals an almost identical structure playing out, albeit on a much larger scale.\u00a0<\/p>\n The market appears to have formed a Double Bottom, followed by a mid-cycle correction and consolidation within a descending broadening wedge pattern<\/a>. This same fractal unfolded before the explosive altcoin rally in 2017. The analyst\u2019s 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 \u201cPump 2.0\u201d.\u00a0<\/p>\nAltcoin Market Mirror 2016-2018 Breakout Setup<\/h2>\n