According to Rekt Capital, a prominent analyst in the cryptocurrency space, there are indications that altcoins could hit a local price bottom during early summer, possibly in June. As outlined in the analyst's recent post on May 8, altcoins seem to be following a specific plan as previously anticipated.

Altcoins had already reached their lowest point in early February and experienced a decline during the BTC Halving event. The next anticipated move for altcoins is to find their lowest point once again in the upcoming summer months.

Identifying the Start of Altcoin Season

When altcoins begin to gain traction, Bitcoin's dominance in the overall cryptocurrency market tends to decrease as they attract a larger market share collectively. This shift often corresponds with heightened interest on social media platforms and other sources regarding particular altcoins. The landscape is often influenced by news, online discussions, and speculative trading activities.

During the onset of the altcoin season, various factors such as technological advancements, community initiatives, partnerships, and market trends contribute to the increased trading volume and price surges in altcoins. Traders and investors also tend to diversify their investment portfolios, which further directs attention towards altcoins.

Bitcoin Dominance and Altcoin Performance

Bitcoin holds a significant share in the cryptocurrency market, followed by Ethereum and a few other altcoins. Changes in Bitcoin's dominance often impact the movement of altcoins. When Bitcoin's dominance rises, altcoins tend to remain relatively stable. Conversely, as altcoin dominance increases, their value begins to rise while Bitcoin's value remains relatively constant.

Overall, a simultaneous increase in dominance and Bitcoin's price could signal a bearish trend for altcoins, while a decline in dominance alongside a rising Bitcoin price could indicate a bullish period for altcoins.