Altcoins
98% of Altcoins Are Past Market Cycle, Bitcoin Is in Transition
Andrew Kang, founder of Mechanism Capital, believes that almost all altcoins have reached the peak of their market cycle. In contrast, he said that Bitcoin (BTC) is in the middle of a transition amid the latest price surge.
Kang Identifies Inflection Point in Bitcoin Market
In one of his recent posts on X, Kang referenced a previous statement he made about a week ago, citing the performance of the cryptocurrency market.
The analyst noted that Bitcoin has led the cryptocurrency market to reach an inflection point. This comes after prolonged periods where trading behaviors are instilled and consistently rewarded. In his article, he highlighted a common mistake in the cryptocurrency industry. That is, buying crypto assets too early when the trend has turned from top to bottom.
The most common mistake you see in the cryptocurrency markets is buying too early when the trend has turned from up to down.
Corrections due to breakdowns in major market structures are always deeper and longer than most people expect.
You don’t buy when a few people are 10% bearish from BTC highs. Some… https://t.co/8vLwKXBa4G
— Andrew Kang (@Rewkang) July 7, 2024
According to Kang, corrections due to major market structure breakdowns are much deeper and longer than what is usually expected. His advice to investors and traders is to buy Bitcoin and altcoins for the next cycle, when everyone is liquidated, rather than when a few people are faced with bearish sentiment.
An X user reacted to Kang’s post, saying that his comments suggested that the current cycle was over. Additionally, he asked if there was any point in buying a token in the near future.
To this end, Kang expressed his stance that 98% of altcoins reach the top of the market cycle. While he did not elaborate, he suggested that only a few coins would reach a new high by Q4 2024 or Q1 2025.
Ethereum Spot ETF Trading Triggers Price Surge
Notably, the number one altcoin Ethereum ETH is unlikely to fall into the first category described by Kang. The crypto industry currently expects the U.S. Securities and Exchange Commission (SEC) to approve spot trading of Ethereum ETFs.
Analysts and market watchers are optimistic about the SEC’s decision in the next two weeks. If it happens as expected, ETH is set to see another mega rally. At the time of writing, the altcoin was trading at $2,998.67 with a 1.64% decline in the last 24 hours. ETH price is expected to climb to $3,800 and even higher in the short term according to projections.
Kang acknowledged that Bitcoin Bitcoin is currently in a transition phase towards a “supercyclical asset”. However, it is not yet clear in which direction it will evolve at this point.
Learn more: Chainlink Price Analysis Hints at $20 Upside on Whale Momentum