Market analysts foresee a potential bottom for altcoins in early summer, contingent upon Bitcoin's behavior, with signals indicating a possible turnaround for the altcoin market.

Altcoin Bottom Projected for June
According to Rekt Capital, a renowned crypto analyst, historical chart patterns suggest that altcoins could hit their local price bottom around the beginning of June. This projection aligns with previous trends, including altcoins bottoming out in early February and experiencing a sell-off around the Bitcoin Halving. The recent slump in the altcoin market over the past month, with a 21% decrease in market cap excluding the top 10 cryptocurrencies, supports this analysis.

Despite the recent downturn, altcoin market cap remains up by 24% year-to-date and 167% over the past year. Alex Onufriychuk, a blockchain adviser, attributes the potential June bottom to reduced liquidity from United States spot Bitcoin exchange-traded funds (ETFs), suggesting a prolonged consolidation period.

Altcoin Bull Cycle Hinges on Bitcoin Breakout
Aurelie Barthere, principal research analyst at Nansen, emphasizes the correlation between altcoin performance and Bitcoin sentiment. While a local bottom for altcoins is plausible, Barthere highlights that a sustained altcoin bull run depends on Bitcoin's breakout to the upside. Currently, Bitcoin price consolidation around the 20-day exponential moving average has increased volatility in altcoins.

Barthere explains that altcoins thrive in a highly bullish sentiment environment, which necessitates a clear resumption of Bitcoin's uptrend for altcoins to outperform. Although Bitcoin has been posting lower highs since mid-March, analysts view this as a healthy consolidation phase following the halving.

Factors Influencing Altcoin Price Rise
While finding a local bottom may not immediately trigger an altcoin rally, positive indicators suggest potential price increases. On the monthly chart, top altcoins like Ether are showing buy signals on moving average indicators. Additionally, the M2 money supply in the United States turning positive year-over-year for the first time since November 2023 indicates potential investment flows into altcoins and memecoins as hedges against inflation or alternative investments.

In summary, while altcoins may find a bottom in early summer, sustained price increases and a bull cycle hinge on Bitcoin's movement and other fundamental factors such as increased investment and regulatory developments.