The total cryptocurrency market capitalization is currently undergoing a corrective phase, as indicated by market analyst Chetan. This evaluation suggests that the market has entered an ABC correction after completing a five-wave pattern in December 2024. The analysis anticipates a recovery period that could lead to a substantial bullish wave, potentially elevating the total market cap to between $10 trillion and $24 trillion.
Chetan identifies two primary scenarios for the ongoing correction. The first scenario, termed a running flat correction, posits that the market could find support near $2.62 trillion. This level aligns with historical support zones that have previously functioned as demand areas for the overall market.
In contrast, the second scenario presents an expanded flat correction, projecting deeper downside potential. Under this framework, the analyst notes that Wave A concluded in April 2025, while Wave B was completed by October 2025. The market is now poised to enter the final C-wave phase, which could drive the total crypto market cap down to between $2.2 trillion and $2.3 trillion before the anticipated Wave 3 surge begins.
Bitcoin”s recent price movement, peaking at $87,583.98, is interpreted as a potential B-wave fake-out. This behavioral pattern often confounds market participants and creates deceptive movements before establishing a genuine trend reversal. Such price action supports the notion that the market is still in the early stages of correction.
The correlation between the altcoin market cap and the total crypto market cap reinforces the technical analysis. Both sectors exhibit similar five-wave structures and have entered three-wave ABC corrections concurrently. This synchronization suggests a broader market behavior rather than isolated movements within different crypto sectors.
Market psychology plays a significant role in Chetan”s analysis. The expectation of continued upward movement among traders could set the stage for the anticipated correction. It is crucial to recognize that while the near-term outlook may seem bearish, the long-term perspective remains bullish. The projections for Wave 3, anticipated to range from $10 trillion to $24 trillion, indicate significant potential growth from current levels.
This technical outlook reflects historical patterns where deep corrections have often been precursors to explosive rallies in previous market cycles. As the market navigates through this corrective phase, the focus remains on sustained capital inflows that could catalyze the next bullish wave in the cryptocurrency landscape.
