A veteran crypto analyst warns that many altcoin investors are about to pay heavily for misreading the current market crash.
Altcoin Psycho warns: Many investors are about to be burned
Twitter analyst nicknamed Altcoin Psycho has updated his predictions for the altcoin market. In their most recent analysis, Psycho tells his 457,000 followers that trying to use 2018 models to forecast the 2022 bottom is a false proposition. In part of the tweet, the analyst mentions:
Many investors who nailed the recent bottom will burn out trying to time it. Market dynamics for risky assets between 2018 and 2022 are quite different; stock correlation, QT, inflation, etc. Using the same tools to schedule this bottom as the last probably won’t work.
However, the experienced analyst says that the explosion of big players is not a bottom signal like last time:
The recent bottom was marked by the deletion of a few big names, but stocks were still in a bull market. It is no longer a bottom signal when a major player is eliminated. We are in a macro bear market right now, bottoms are not bad on good news This time may actually be different.
Investors misread the market, says analyst
Altcoin Psycho encourages its followers to think about the bear market bottom as a matter of time, not price. For the upcoming periods, the analyst gave the following recommendations:
I think bottom will be a function of ‘when’ not ‘where’. ‘When’ usually means slow bottom formation. ‘Where’ usually means v-inversion. I’m having a hard time thinking of us going back. I’m not trying to time a price-based bottom, I’m actually expecting to see a positive change in macro.
Altcoin Psycho says it’s bullish on this altcoin
The popular analyst says that while moving to certain altcoins, the layer 1 Blockchain Cosmos (ATOM) is still bullish. Meanwhile, on ATOM, the analyst’s forecasts were quite positive:
I’ll look like a genius or a fool in a few years, but I can’t emphasize enough how optimistic I am about the cosmos ecosystem.
At the time of writing, Cosmos (ATOM) has been stable in the last 24 hours and is trading at $8.13. The analyst’s bullish prospect comes amid bad news from Ignite, the company behind Cosmos.
Cosmos’ developer company Ignite cuts staff by more than 50%
The news comes amid the crypto market crash and the return of the controversial ex-CEO of Ignite. However, two ex-employees of Ignite, the company that first built the Cosmos ecosystem, cut their staff by more than half this week, according to a source close to the company. The news comes after Ignite CEO Peng Zhong announced on Friday that he will be leaving the company. As we quoted as Kriptokoin.com, a similar decision had come from Coinbase before.
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