Analyst Says 2025 Altcoin Rally Could Mirror Past Surges – Here is Why

Crypto traders are once again turning their eyes to altcoins as technical setups suggest that history may be repeating itself.

Market analyst Merlijn the Trader shared a chart highlighting what he describes as an “identical” structure forming in 2025, one that mirrors the explosive rallies seen in 2023 and 2024.

A repeating cycle

According to the analysis, the total altcoin market cap has been moving within a rising channel for the past two years. Each time liquidity builds near the lower boundary, sharp upward moves follow, igniting what many refer to as “altcoin season.” The pattern played out in late 2023 and again in mid-2024, with both rallies adding hundreds of billions of dollars to the sector.

The same setup is now visible again in 2025. If the trend holds, the altcoin market could be preparing for another parabolic leg, potentially driving valuations toward the upper range of the channel, around $2.4 trillion.

Liquidity-driven momentum

Merlijn stressed that liquidity flows remain the key driver behind these cycles. When Bitcoin consolidates or moves sideways, capital often rotates into smaller tokens, fueling rapid gains. He warned that ignoring these repeating structures could leave traders “chasing green candles instead of riding them.”

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What’s at stake

For investors, the outlook highlights both opportunity and risk. Altcoin rallies have historically been powerful but short-lived, often ending in sharp corrections. Traders watching for confirmation of this third leg may see September and October as critical months to gauge momentum.

If the channel structure holds, 2025 could deliver another explosive altcoin season, extending a cycle that has already reshaped the broader crypto landscape over the past two years.