Altcoin Cup Handle Points to Possible Breakout and Altseason Rally

The crypto market has been experiencing a subdued period, with Bitcoin and Ethereum trading near the lower end of their recent range. However, some analysts believe that this gloomy narrative overlooks a constructive development on the altcoin chart.

According to these market observers, altcoins are currently forming a distinctly bullish pattern that may shift the trend in favor of risk assets if it completes. This pattern is known as a cup and handle, which often precedes sharp upside continuation after a lengthy base-building phase.

The current macro backdrop bears some similarities with the market shock that accompanied the COVID-related crash in 2020. Back then, crypto assets experienced a violent sell-off before rebounding strongly, with many coins soaring to new highs within months of the crisis bottom.