Matrixport: Altcoins experienced a bounce, but it turned out to be tactical again and quickly fizzled out.
According to analysts, the leading dynamics model of altcoins has once again briefly signaled a recovery relative to #BTC. It showed a temporary decrease in Bitcoin's dominance. However, as the overall capitalization of the cryptocurrency market began to decline again, the signal was quickly neutralized.
Importantly, the model has consistently prioritized BTC over the past one to two years. This bias has proven to be justified. The sustained underperformance of altcoins in the context of a bullish BTC market is historically atypical, but this is what we are observing now.
On the chart, this reads quite clearly. Periods when altcoins outperform BTC are becoming shorter and less stable. The last bounce was no exception.
Key points from the report:
- There was a short window for altcoin traders.
- The signal was formed on the decline of BTC dominance.
- As the market weakened, the signal quickly reversed.
- The model continues to favor BTC.
- "Headwinds" for altcoins are likely to persist.
The market has moved away from simple long-only strategies and averaging. The focus now is on entry points, active position management, and capital protection. Asset quality is becoming a critical factor again. Analysts indicate that, in their view, the era of mindless bets on the entire altcoin market has ended.
