Altcoins
Altcoins to Bottom in Early Summer Ahead of Bull Run — Analyst — TradingView News
Aside from Bitcoin, the cryptocurrency market could hit its local low in June, marking the start of the altcoin’s next bull cycle, according to market analysts.
Altcoin Bottom Could Come in June — Analyst
Based on historical chart patterns, altcoins could reach their local lowest price around the beginning of June, according to popular crypto analyst Rekt Capital, who wrote in a May 8 article:
“Altcoins follow the plan perfectly. Altcoins reached their lowest level in early February. Altcoins sold off around the BTC halving. Altcoins bottom out in early summer.
Cointelegraph
The altcoin market has taken a beating over the past month. The market capitalization of altcoins, excluding the 10 largest cryptocurrencies, fell more than 21% over the past month to $265 billion.
Despite the monthly decline, the altcoin’s market cap is still up over 24% year-to-date (YTD) and over 167% over the past year.
Altcoin sentiment is historically correlated with Bitcoin 
“It is possible that they will reach their local low by June due to the lack of sufficient new liquidity from Bitcoin ETFs in the United States and Hong Kong. This indicates that the consolidation period could be extended.
Related: Has XRP price bottomed against Bitcoin?
Bitcoin Breakout Will Trigger Altcoin Bull Cycle – Nansen
Despite the existence of a potential local bottom, an altcoin bull run would first require the price of Bitcoin to rise higher, according to Aurelie Barthere, senior research analyst at Nansen, who told Cointelegraph:
“Altcoins are high beta cryptocurrencies, they succeed when sentiment is very optimistic. Since mid-March, crypto investor sentiment has been less exuberant. As BTC price consolidates around the 20-day exponential moving average, alts are more volatile. We need a breakout above and a clear resumption of the BTC uptrend for alts to outperform.
BTC price is showing lower highs since mid-March. However, many analysts say this is a healthy period of consolidation after the halving. Additionally, the charts suggest a multi-month bull flag is shaping up to hit new all-time highs later in 2024. 
Since altcoin sentiment is strongly tied to the price of Bitcoin, finding a local bottom would not necessarily result in an altcoin rally, Qubic Labs’ Onufriychuk wrote:
“Even if altcoins hit their local low around June, it does not necessarily mean that a bull run will begin. For a significant turnaround, more fundamental changes are needed, such as increased retail and institutional investment and favorable regulatory developments, given the scarcity of new liquidity and the heavy reliance on institutional reinvestment in new projects.
On the monthly chart, 10 out of 12 moving averages (MAs) are giving a buy signal for top altcoins, such as Ether (ETH), which has been struggling. Moving average indicators are commonly used in technical analysis to determine the average price of the underlying asset in relation to a given time period.
Altcoin prices could also rise due to the M2 money supply, which turned positive year-over-year for the first time since November 2023, signaling that investors may soon start looking for hedges against the inflation or alternative investments.
The M2 money supply estimates all cash and short-term bank deposits in the United States.
As the money supply increases in the world’s largest economy, some of the new supply could end up in altcoins and memecoins, contributing to the start of the “altszn”.
Related: Bitcoin distribution ‘danger zone’ is over, analysts say
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