Analysts are saying that altcoins are likely trying to spark a new bull run while Bitcoin (BTC) decides its next move.
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 market capitalization of altcoins stands at $294 billion, up from $76 billion in November 2022 during 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 Bitcoin forming a monthly bull flag right now.”
However, the trader said those looking for a longer, more robust bull run might prefer to see BTC consolidate for longer before continuing its upward trajectory. He said a clean breakout above $71,500 could signal that BTC is headed for a faster bull run in the near term.
“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 other hand, investors are naturally hoping for a breakout, but it would involve an accelerating cycle and Bitcoin would likely reach its bull market peak sooner.
On the other hand, a prolonged consolidation here would help resynchronize with the historical halving cycle, leading to a prolonged bull market.
There is no right or wrong answer.Both are bullish
The question is whether this will be a short-term bull market or a classic long-term bull market.
We should see a historically typical long, but with Bitcoin one price above the range high of $71,500 on the weekly close, we may see a buck against the flow of history again.”
At the time of writing, Bitcoin is trading at $70,221.
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