A popular cryptocurrency analyst and trader, nicknamed AltcoinPsycho, thinks that the previous performance of Bitcoin (BTC) and altcoin projects should not be relied upon during the descending phases of the cycles.
“Don’t bet on altcoin projects after Bitcoin hits bottom!”
Altcoin Psycho is confident that this cryptocurrency cycle will be different from its predecessors. Typically, after a potential Bitcoin (BTC) bottom, traders shifted liquidity to altcoin projects. The analyst makes the following assessment:
IMO this bottom will look different than in the past and cause more pain. In past cycles, BTC bottomed and soon after, people bet big on alternatives. When BTC bottoms out this time, I expect many to hit the bottom and be crushed by the unlock/supply shock. The next cycle will be less forgiving.
According to the analyst, this cycle is a special one and the leading crypto Bitcoin is bottoming out. after hitting, the alternatives will have large room for further decline. The analyst says that this can be attributed to the upcoming wave of token unlocks.
The analyst states that new unlocks will cause additional selling pressure on altcoin projects, breaking newcomers and their long positions. Therefore, according to the analyst, it is better not to try to catch falling knives in this cycle. Altcoin Psycho concludes that the next cycle will therefore be more brutal.
“Altcoiners should watch out for shorts!”
Also, there is no consensus on what the bottom is in this loop. Bitcoin, Ethereum, altcoins and market cap will likely bottom out at different times, according to the analyst. Therefore, the Bitcoin (BTC) bottom may only mark the beginning of altcoin drama. The analyst states that some mainstream altcoins perform less than 10% of their inflation curves. This means that new coins will be added to market participants.
However, the analyst emphasizes that opening a short position in this market can be much more dangerous than ‘drawing aside for cash’. Meanwhile, as we reported earlier on Kriptokoin.com, Bitcoin Dominance Ratio (BTC.D) – BTC dominance rate – is revisiting several-month highs and approaching the critical 50% level.
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