As an experienced market analyst, I believe that the altcoin bottom could occur in June based on historical chart patterns and current market trends. However, it is important to note that this potential local bottom does not automatically mean the start of a significant altcoin bull run.
As a crypto investor, I’ve been keeping a close eye on the market trends and analysis from industry experts. Based on their insights, Bitcoin (BTC) might not be the only cryptocurrency experiencing a downturn. The broader cryptocurrency market could potentially find its local bottom around June. This would mark the beginning of the next altcoin bull cycle, where alternative digital currencies could see significant price gains.
Altcoin bottom could occur in June: analyst
According to renowned cryptocurrency analyst Rekt Capital’s assessment based on historical price trends, altcoins may reach their temporary bottom in terms of pricing around early June. (May 8, X post)
“Altcoins are following the plan perfectly. Altcoins bottomed in early February. Altcoins sold off around the BTC Halving. Altcoins to bottom early summer.”
During the last month, the value of smaller cryptocurrencies collectively decreased significantly. Specifically, the total market capitalization of altcoins, not including the top 10 cryptocurrencies, dropped by nearly 21% to approximately $265 billion.
Although the altcoin market experiences a decline every month, its total value remains more than 24% higher compared to the beginning of this year, and it has surged over 167% in the last twelve months.
The relationship between the sentiment of altcoins and the price of Bitcoin has historically been strong. Based on current market sentiment and Bitcoin’s price, which is being influenced by decreasing inflows into U.S. spot Bitcoin ETFs, Alex Onufriychuk, a blockchain advisor and coach at QUBIC Labs Accelerator, predicts that altcoins may reach their local bottom around June. (Source: CryptoMoon)
“There is a possibility that could find their local bottom by June due to the lack of sufficient new liquidity from Bitcoin ETFs in the U.S. and Hong Kong. This indicates that the consolidation period may be prolonged.”
Bitcoin breakout will spark altcoin bull cycle: Nansen
According to Aurelie BarTHERE, principal research analyst at Nansen, a significant surge in altcoin prices might only occur after Bitcoin breaks above its current price ceiling and rises upward, as she explained to CryptoMoon.
“Altcoins are high beta crypto, they are successful when the sentiment is very bullish. Since mid-March, the sentiment among crypto investors is less exuberant. As BTC price consolidates around the 20-day Exponential Moving Average (EMA), there is more volatility in Alts. We need a break above and a clear resumption of BTC uptrend for alts to outperform.”
The price of Bitcoin has been forming successively lower peaks since mid-March, but some market analysts contend that this is a normal phase of consolidation following the halving event. Furthermore, technical chart analysis suggests the formation of a multi-month bull pennant or flag, which could signal new record highs in the latter part of this year.
According to QUBIC Labs’ Onufriychuk, the mood towards altcoins closely mirrors that of Bitcoin. Therefore, identifying a low point for Bitcoin prices doesn’t automatically signal an upturn for altcoins.
“Even if altcoins find their local bottom around June, it does not necessarily mean that a bull run will start. For a significant turnaround, more fundamental changes are required, such as increased retail and institutional investment and favorable regulatory developments, given the scarcity of new liquidity and heavy reliance on institutional reinvestment into newer projects.”
As a crypto investor, I closely monitor the moving averages of the top altcoins like Ether (ETH) on a monthly chart. Currently, ten out of twelve moving averages are signaling a buy opportunity for these coins. Moving averages function as useful technical analysis tools by calculating the average price of an asset over a specified time frame, providing valuable insights into potential buying and selling opportunities. In this case, their positive signal suggests that Ether may be ready for an uptrend despite its recent struggles.
The increase in the M2 money supply, which has turned positive on a yearly basis for the first time since November, might lead to a rise in altcoin prices. This development could indicate that investors are preparing to seek protection against inflation or explore alternative investment opportunities.
The M2 monetary supply represents the total amount of cash on hand and short-term deposit accounts throughout the United States.
As a crypto investor, I keep an eye on the money supply expansion in the world’s largest economy. If a substantial portion of this newly created money enters the cryptocurrency market, it could potentially boost demand for altcoins and memecoins, triggering the initial stages of an “altszn” (altcoin season).
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2024-05-10 08:43