Is the crypto market cap poised for a final euphoric rally to $4.6T by December 2025, or are we backtesting resistance before a brutal drop to $1.3T by January 2026? My analysis, based on major trend lines, Elliott Wave patterns, and historical price action, suggests both scenarios are in play. Let’s break it down.
Bullish Scenario: $4.6T by Dec 2025
The total market cap is riding an ascending channel from the 2022 lows (~$800B). My trend lines show resistance at $3T-$3.5T, where we’re currently testing. Historical cycles (2017, 2021) often end with an extended 5th wave, driven by altcoin mania and institutional FOMO. If we break $3.5T, the next Fibonacci extension (1.618) targets ~$4.6T, aligning with Q4 seasonality (crypto’s strongest quarter). Key support at $2.5T must hold for this to play out. A Bitcoin breakout above $100K or Ethereum hitting $5K could fuel this rally, with DeFi and Layer-2 tokens adding juice. Risk: Overbought conditions could cap the move early—watch for RSI divergence at resistance.
Bearish Scenario: $1.3T by Jan 2026
Alternatively, my wave count suggests we’re in a corrective wave 2, backtesting $3T resistance after wave 1 peaked. If rejected here, wave 3 could drive a steep correction to $1.3T, a 0.618 Fibonacci retracement and prior support from mid-2023. Historical bear markets (2018: -88%, 2022: -73%) show crypto’s vulnerability post-peak. My trend lines mark $1.5T-$2T as interim support, but a macro shock—rising yields, regulation, or recession—could push us lower. Timing Risk: Jan 2026 is aggressive; a bottom might extend to Q2 2026 absent a clear catalyst.
Why These Levels?
Trend Lines: The ascending channel and $3T resistance are clear on the weekly chart. A break above confirms bullish momentum; rejection signals bearish reversal.
Historical Action: Past cycles show parabolic tops followed by 50-80% corrections. $4.6T fits euphoria; $1.3T fits pain.
Patterns: Elliott Waves align with my markings—wave 5 for bulls, wave 3 for bears. The $1.3T level matches the 200-week MA, a cycle bottom indicator.
What to Watch:
Bullish Confirmation: Break above $3.5T with volume; Bitcoin holding $80K+.
Bearish Confirmation: Rejection at $3T, break below $2.5T support.
Invalidation: Bullish case fails below $2T; bearish case fails above $4T.
This isn’t a prediction but a map of possibilities. My drawings highlight the levels and patterns guiding my view—check them on the chart. What do you think—bullish blow-off or bearish breakdown? Let’s discuss!
Bullish Scenario: $4.6T by Dec 2025
The total market cap is riding an ascending channel from the 2022 lows (~$800B). My trend lines show resistance at $3T-$3.5T, where we’re currently testing. Historical cycles (2017, 2021) often end with an extended 5th wave, driven by altcoin mania and institutional FOMO. If we break $3.5T, the next Fibonacci extension (1.618) targets ~$4.6T, aligning with Q4 seasonality (crypto’s strongest quarter). Key support at $2.5T must hold for this to play out. A Bitcoin breakout above $100K or Ethereum hitting $5K could fuel this rally, with DeFi and Layer-2 tokens adding juice. Risk: Overbought conditions could cap the move early—watch for RSI divergence at resistance.
Bearish Scenario: $1.3T by Jan 2026
Alternatively, my wave count suggests we’re in a corrective wave 2, backtesting $3T resistance after wave 1 peaked. If rejected here, wave 3 could drive a steep correction to $1.3T, a 0.618 Fibonacci retracement and prior support from mid-2023. Historical bear markets (2018: -88%, 2022: -73%) show crypto’s vulnerability post-peak. My trend lines mark $1.5T-$2T as interim support, but a macro shock—rising yields, regulation, or recession—could push us lower. Timing Risk: Jan 2026 is aggressive; a bottom might extend to Q2 2026 absent a clear catalyst.
Why These Levels?
Trend Lines: The ascending channel and $3T resistance are clear on the weekly chart. A break above confirms bullish momentum; rejection signals bearish reversal.
Historical Action: Past cycles show parabolic tops followed by 50-80% corrections. $4.6T fits euphoria; $1.3T fits pain.
Patterns: Elliott Waves align with my markings—wave 5 for bulls, wave 3 for bears. The $1.3T level matches the 200-week MA, a cycle bottom indicator.
What to Watch:
Bullish Confirmation: Break above $3.5T with volume; Bitcoin holding $80K+.
Bearish Confirmation: Rejection at $3T, break below $2.5T support.
Invalidation: Bullish case fails below $2T; bearish case fails above $4T.
This isn’t a prediction but a map of possibilities. My drawings highlight the levels and patterns guiding my view—check them on the chart. What do you think—bullish blow-off or bearish breakdown? Let’s discuss!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.