Will Bitcoin and Altcoins Fall Together in This Cycle? Veteran analyst shares his opinion
Altcoin Psycho, Legendary Anonymous Trader and Advisor at Sino Capital, Shares Uber-Bearish Prediction for Altcoin Holders
A cryptocurrency analyst using @AltcoinPsycho is confident that we should not rely on the past performance of Bitcoin (BTC) and altcoins in the declining phases of cycles.
Don’t bet on altcoins once Bitcoin (BTC) hits the bottom
mr. Altcoin Psycho is confident that this cryptocurrency cycle will be unlike any before. Typically, after a potential Bitcoin (BTC) bottom, traders moved liquidity to altcoins.
IMO this bottom will look different from the last one causing more pain
In previous cycles, BTC hit rock bottom and soon after, people are betting big on alt
When BTC hits bottom this time, I expect many will rush to alts and get crushed by unlocks/delivery shocks
The next cycle will be less forgiving.
— Altcoin Psycho (@AltcoinPsycho) May 28, 2022
By the way, this cycle is a special one: after Bitcoin (BTC) bottoms, alts will have a lot of room to drop further. This is to be attributed to an imminent wave of token unlocks.
New unlocks are putting additional selling pressure on altcoins: new entrants and their long positions are being decimated. Therefore, it is better not to try to catch falling knives in this cycle.
The next cycle will be more brutal in these terms, concludes Mr. Altcoin Psycho.
Altcoiners should be careful with shorts
Also, this cycle lacks agreement on what the bottom is: Bitcoin, Ethereum, altcoins, and market cap will most likely hit the bottom in different times.
The bottom of Bitcoin (BTC) could thus only signal the beginning of the altcoin drama. The analyst emphasizes that some of the mainstream altcoins realized less than 10% of their inflation curves. This means that new coins are released to market participants.
However, opening short positions in this market can be much more dangerous than “standing in cash on the side,” adds the analyst.
As previously described by U.Today, the Bitcoin dominance ratio (BTC.D) is returning to multi-month highs and approaching the critical level of 50%.