According to Nansen’s chief research analyst, altcoins’ bull run will first require Bitcoin to break out of its current price range. In this context, the cryptocurrency market could see a local downturn in June, which may signal the start of the next altcoin bull cycle.
Altcoins May Hit Bottom in June
Rekt Capital suggests that altcoin prices could drop in June, based on past chart patterns indicating that altcoins may be nearing local price bottoms.
The analyst highlighted the following:
“The situation with altcoins is quite clear. They hit their lows in February. They were under selling pressure during Bitcoin’s halving period. Now, they might hit bottom levels again at the start of the summer.”
Last month, the altcoin market experienced a significant downturn. The total market value of altcoins, excluding the top 10 cryptocurrencies, fell by over 21% to $265 billion compared to the previous month.
However, despite the monthly decline, the altcoin market has recorded an increase of over 24% since the beginning of this year and has grown by more than 167% compared to last year.
Altcoin Market Linked to Bitcoin
The altcoin market is generally closely related to Bitcoin prices. This relationship has been evident in the past. According to Alex Onufriychuk, a Blockchain consultant at QUBIC Labs Accelerator, market sentiment and Bitcoin prices have been under pressure due to the decline in spot Bitcoin exchange-traded funds (ETFs) in the US.
This situation, according to Onufriychuk, means that altcoins could find their local bottoms around June. Onufriychuk commented on the issue:
“Due to insufficient new liquidity from Bitcoin ETFs in the US and Hong Kong, there is a possibility that altcoins will find their own bottom levels by June. This indicates that the consolidation process could be extended.”
Development That Could Ignite Altcoins
Bitcoin’s price has been low since mid-March, but many analysts believe this is just a healthy consolidation process after the halving. According to Aurelie Barthere, Nansen’s chief research analyst, for altcoins to start their bull run, Bitcoin’s price first needs to experience an upward breakout. Barthere notes that altcoins generally succeed during periods of increased market enthusiasm.
Onufriychuk from QUBIC Labs suggests that the bull run might not start immediately:
“Since altcoin sentiment is strongly linked to Bitcoin prices, there is no guarantee that finding a local bottom will result in an altcoin rally. Altcoins might see their local bottoms around June, but this does not mean that a bull run will start immediately. Significant recovery requires new liquidity and institutional investment, influenced by factors like increased individual and regulatory positive changes.”
