According to Nansen’s chief research analyst, altcoins' bullish trend hinges on Bitcoin breaking out of its current price range. The analyst suggests that a possible local downturn in the cryptocurrency market in June might indicate the beginning of the next altcoin bull cycle.
Rekt Capital predicts that altcoin prices could potentially dip in June based on historical chart patterns that suggest altcoins may be approaching local price bottoms.
Recent data shows that the total market value of altcoins, excluding the top 10 cryptocurrencies, dropped by over 21% to $265 billion in the past month. Despite this monthly decrease, the altcoin market has shown significant growth of over 24% since the beginning of this year and a remarkable 167% increase compared to last year.
Bitcoin's Influence on the Altcoin Market
The relationship between Bitcoin prices and the altcoin market has been historically significant. Alex Onufriychuk, a Blockchain consultant, notes that market sentiment and Bitcoin prices have been influenced by the decreased availability of spot Bitcoin exchange-traded funds (ETFs) in the US.
Onufriychuk suggests that due to the lack of new liquidity from Bitcoin ETFs, altcoins might reach their local low points around June, elongating the consolidation process.
Factors Sparking Altcoin Growth
For altcoins to enter a bullish phase, Bitcoin must experience a breakout from its current price levels, says Aurelie Barthere, Nansen’s chief research analyst. Barthere highlights that altcoins tend to perform well during periods of heightened market optimism.
Despite the optimism, Onufriychuk warns that finding a local low in altcoins may not immediately trigger a rally. He emphasizes that significant recovery relies on factors such as new liquidity and institutional investment spurred by positive changes in regulations and individual investments.
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