While a major bull rally is expected in Bitcoin and altcoins, many predictions are made about its timing.
At this point, market analysts pointed to June for the start of the altcoin rally. Accordingly, analysts stated that the cryptocurrency market will reach its local bottom in June and said that Bitcoin must first break out of its current range for the altcoin rally to begin.
First of all, Nansen chief research analyst Aurelie Barthere said that the altcoin market was hit by the halving and started to decline. According to the analyst, even if altcoins see a potential local bottom, the Bitcoin price will first need to make an upward move for an altcoin bull rally to begin.
Speaking to Cointelegraph, Nansen analyst Barthere said:
“Altcoins are high beta cryptocurrencies. They do well when the sentiment in the market is very bullish and that is when they become bullish.
But since mid-March, sentiment among crypto investors has been less enthusiastic. Additionally, while the BTC price is also consolidating around the 20-day exponential moving average, altcoins are experiencing more volatility.
For altcoins to outperform, we need an upside breakout in Bitcoin and a clear resumption of the BTC uptrend.
“If BTC goes into bullish mode again, rises may also be seen in altcoins.”
Apart from the Nansen analyst, Qubic Labs Accelerator analyst Alex Onufriychuk also evaluated the Bitcoin altcoin relationship.
Stating that historically altcoins have been directly correlated with the BTC price, the analyst said altcoins could reach local bottoms around June as market sentiment and Bitcoin price remain under pressure as inflows in US spot BTC ETFs decrease:
“With not enough new liquidity coming from spot Bitcoin ETFs in the US and Hong Kong, there is a possibility that BTC and altcoins will find local bottoms by June.
This shows that the consolidation period may be extended. Afterwards, the rise may begin.”
*This is not investment advice.