Altcoin Psycho, legendary anonymous trader and advisor at Sino Capital, shares uber-bearish prediction for altcoins holders
A cryptocurrency analyst who goes by @AltcoinPsycho is certain that we don’t need to rely on the previous performance of Bitcoin (BTC) and altcoins in the downswings of the cycles.
Don’t bet on altcoins once Bitcoin (BTC) bottoms
Mr. Altcoin Psycho is sure that this cryptocurrency cycle will be different from all previous ones. Typically, after a potential Bitcoin (BTC) bottom, traders moved liqudity to altcoins.
By the way, this cycle is special: after bitcoin (BTC) dips, alts will have a large additional downside margin. This should be attributed to an upcoming wave of token unlocks.
New unlocks will provoke additional selling pressure on altcoins: newcomers and their long positions will be decimated. As such, it is better not to try catching 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 consensus on what the bottom is: Bitcoin, Ethereum, altcoins and market capitalization will most likely reach the bottom in different times.
So, the Bitcoin (BTC) bottom could only signal the start of the altcoin drama. The analyst points out that some of the traditional altcoins have achieved less than 10% of their inflation curves. This means that new coins will be made available to market players.
However, opening short positions on this market might be far more dangerous than “being sidelined in cash,” the analyst adds.
As previously reported by U.Today, the Bitcoin Dominance Ratio (BTC.D) is revisiting multi-month highs and gradually approaching the critical 50% level.
