While Bitcoin (BTC) will decide its next move, altcoins are likely to spark another rally, noted analysts say.
Anonymous trader Rekt Capital told his 470,000 followers on social media platform X that altcoins are at the beginning of a “hype cycle” in which they will find a bottom before embarking on a new uptrend.
“Welcome to the second quarter altcoin hype cycle
The altcoin bottoming process is underway.”
At the time of writing, the total altcoin market capitalization has reached $294 billion, up from $76 billion in November 2022, at the worst of the bear market.
Regarding Bitcoin, Rekt Capital states that BTC may form a bullish flag on the monthly chart. A bullish flag, as its name suggests, is typically viewed as a bullish technical setup that suggests an upward impulse followed by temporary stabilization, followed by a rise again.
“Imagine if Bitcoin was forming a monthly bull flag right now.”
However, those hoping for a longer, stronger bull run may want to see BTC stabilize for a longer period before continuing its upward movement, according to the trader. He said that a full breakout above $71,500 could signal that BTC is entering a shorter, faster bull run.
“A prolonged consolidation here would bring Bitcoin closer to resynchronizing with its historic halving cycle.
After all, the current cycle acceleration is still around 190 days (which is an improvement from the 260-day acceleration set in mid-March when BTC hit an all-time high).
On the one hand, investors are naturally hoping for a breakout, but that would involve an acceleration cycle, and Bitcoin would likely reach its bull market peak sooner.
On the other hand, an extended consolidation here could encourage a resynchronization with past halving cycles, potentially resulting in a longer bull run.
There is no right or wrong answer. Both are strong.
Rather, the question is whether bull markets will be short or typically long.
Historically, we would expect to see a typical long, but with the weekly close one place above the $71,500 range high, Bitcoin will once again go against the flow of history. ”
At the time of writing, Bitcoin is trading at $70,221.
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