Despite declines over the past month, the market value of altcoins is up more than 24% year-to-date (YTD) and 167% over the past year.
Sentiment in #altcoins has historically correlated with the price of #bitcoin (BTC). According to Alex Onufrijchuk, blockchain advisor and trainer at gas pedal Qubic Labs, market sentiment and bitcoin prices remain subdued amid declining inflows from US spot bitcoin funds (ETFs). He said. He told Cointelegraph:
"We may find a localized bottom by June due to the lack of sufficient new liquidity from US and Hong Kong bitcoin #ETF funds. This indicates that the consolidation period could drag on.
Despite the possibility of a localized bottom, a bullish rise in altcoins would first require the bitcoin price to break out to the upside, says Aurelie Bartele, lead analyst at Nansen, in a conversation with Cointelegraph:
Altcoins are high-beta cryptocurrencies, and they succeed when sentiment is very bullish; since mid-March, crypto investor sentiment has become less enthusiastic; while #CryptoWatchMay2024 prices have settled near their 20-day exponential moving average, altcoin volatility is on the rise. For altcoins to exceed expectations, we need an upside breakout and a resumption of BTC's uptrend.
BTC prices have been declining since mid-March. However, many analysts argue that this is a healthy period of consolidation after a double-digit drop. Moreover, the charts show that a bull flag will form over the next few months to reach all-time highs in late 2024.
Since sentiment in altcoins is strongly linked to the bitcoin price, the discovery of a local bottom will not necessarily lead to an altcoin rally, writes Qubic Labs' Onufriyichuk:
"Even if altcoin finds a localized bottom in June, it won't necessarily signal the start of a bull rally.
On the monthly chart, 10 of the 12 moving averages (MAs) are buy signals for leading altcoins, including the struggling Ether (ETH).
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