Altcoins are struggling to regain their highs while the crypto market is not showing worrying signs. According to Nansen's senior analyst, as long as bitcoin does not break out of its current range, the situation for altcoins will remain unchanged. Thus, the start of summer risks being more gloomy than ever for crypto traders.
Altcoins in search of their bottom
The altcoin season or altseason currently seems to be hampered by the evolution of the price of bitcoin, this asset being the most influential on the entire crypto market.
Bitcoin in trouble, altcoins are holding their breath. According to Cointelegraphsome analysts believe that the crypto market is about to hit bottomperhaps heralding the start of a new bullish cycle for altcoins.
The fall of the altcoin market is accelerating. Renowned analyst Rekt Capital announces a probable arrival at the lowest within 3 weeks. “ Altcoins follow the plan perfectly », he indicates, emphasizing that these assets had already touched their lowest level last Februarycoinciding with the Bitcoin halving.
Last month, the altcoin market capitalizationwith the exception of the 10 largest cryptocurrencies, suffered a drop of more than 21%, reaching $265 billion. Although this is a significant drop, altcoin capitalization remains up more than 24% year to date and more than 167% year-over-year.
Altcoin market trend remains strongly linked to the evolution of bitcoin, which is stagnating around $63,126. Blockchain advisor Alex Onufriychuk believes altcoins could hit their bottom in Junedue to the lack of new liquidity from Bitcoin ETFs in the United States and Hong Kong.
Waiting for the Bitcoin shake-up!
According to Aurelie Barthere, analyst at Nansen, a new bullish cycle for altcoins will first depend on a takeoff in Bitcoin towards unprecedented heights. Altcoins, these digital currencies with high volatility, shine best when optimism reigns. However, since mid-March, the crypto market has shown a less euphoric feeling.
While BTC price holds around the 20-day exponential moving average, altcoins are experiencing increased volatility. A breakout above this average and a clear revival of the crypto star's rise is necessary for altcoins to regain the lead.
Even though analysts predict a period of consolidation healthy since the halving of the BTC miner reward, it is clear that a significant movement in Bitcoin will trigger a new dynamic for alternative cryptos.
For Alex Onufriychuk of Qubic Labs, a drop in altcoins in June will not be enough to start a bullish cycle. More investment, both private and institutional, will be required, as well as a favorable regulatory environment.
Despite promising buying signals on the monthly chart, and an M2 money supply in the United States that has become positive again since November 2023, altcoins remain dependent on the Bitcoin crypto in great shape to initiate a new bullish cycle.
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