Crypto Market Analysts Predict June as Potential Local Bottom for Altcoins
Market analysts suggest that the cryptocurrency market, apart from Bitcoin, might reach its local bottom in June, potentially heralding the commencement of the next altcoin bull cycle.
According to insights from various analysts, including Rekt Capital, historical chart patterns indicate that altcoins could hit their local price bottom around early June.
Despite experiencing a downturn in the past month, with the market cap of altcoins (excluding the top 10 cryptocurrencies) falling by over 21% to $265 billion, the year-to-date (YTD) and yearly gains remain notable at over 24% and 167%, respectively.
Altcoins are following the plan perfectly…
Altcoins bottomed in early February ✅
Altcoins sold off around the #BTC Halving ✅
Altcoins to bottom early Summer ⏱️$BTC #BitcoinHalving #Bitcoin https://t.co/g5QUFID6jg pic.twitter.com/ZYC6uhrMVl
— Rekt Capital (@rektcapital) May 8, 2024
Altcoin sentiment often correlates with Bitcoin’s price movements. With the Bitcoin price currently consolidating and facing decreasing inflows from US spot Bitcoin ETFs, there’s a possibility that altcoins could find their local bottom by June, according to blockchain adviser Alex Onufriychuk.
However, for a significant altcoin rally to materialize, a breakout in Bitcoin’s price is deemed necessary by analysts like Aurelie Barthere from Nansen. Barthere suggests that altcoins thrive in a highly bullish sentiment environment and typically require a clear resumption of Bitcoin’s uptrend for outperformance.
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Although altcoin sentiment may be linked to Bitcoin’s price movements, finding a local bottom in June might not automatically trigger an altcoin rally. Onufriychuk notes that fundamental changes such as increased retail and institutional investment, along with favorable regulatory developments, are essential for a substantial turnaround.
Technical indicators, such as moving averages (MA), are signaling potential buying opportunities for top altcoins like Ethereum (ETH), despite its recent struggles. Additionally, the positive year-over-year increase in the M2 money supply in the US suggests a potential influx of funds into altcoins and memecoins, potentially kickstarting the “altszn” (altcoin season).
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
