- Altcoins are expected to bottom out in early summer before starting a bull run, according to market analysts.
- For an altcoin bull run to occur, Bitcoin needs to break out from its current range first.
- Despite a potential local bottom in June, increased investment and favorable regulations are required for a significant altcoin turnaround.
The cryptocurrency market has seen a slump in altcoin prices over the past month. However, some analysts believe altcoins could be nearing a bottom before the next bull cycle begins.
When Could Altcoins Bottom Out?
Some analysts predict altcoins could find their local bottom around June. According to popular crypto analyst Rekt Capital, altcoins typically bottom out in early summer based on historical chart patterns.
Rekt Capital points out that altcoins bottomed in early February, sold off around the Bitcoin halving, and now could bottom again in the coming months.
Alex Onufriychuk, a blockchain advisor at QUBIC Labs Accelerator, also believes the lack of new liquidity from Bitcoin ETFs in the US and Hong Kong indicates a prolonged consolidation period. This could lead altcoins to bottom out by June.
What’s Needed for an Altcoin Rally?
While altcoins may find a local price bottom soon, analysts say a significant bull run would require a Bitcoin breakout first.
Aurelie Barthere, principal research analyst at Nansen, notes that altcoins tend to perform well when crypto sentiment is very bullish. For altcoins to outperform, Bitcoin likely needs to break above its 20-day EMA and resume a clear uptrend.
Onufriychuk agrees that even after bottoming out, altcoins would need increased retail and institutional investment as well as favorable regulations to start a major bull trend.
Other Signs of a Potential Altcoin Rebound
Some other signs point to a possible altcoin rebound on the horizon:
- Most major altcoin moving averages are flashing buy signals on the monthly time frame.
- The M2 money supply recently turned positive year-over-year for the first time since November. This could send some new money toward altcoins as investors seek inflation hedges.
While timing the exact bottom is difficult, analysts are keeping an eye on summer as a potential turning point for altcoins before the next bull run. But Bitcoin likely needs to break out first to restart the crypto hype cycle and send altcoin prices surging higher.
