🚨 Altcoins Underperforming in the Short Term! 🚨
In the short and medium term, the Altcoin Season shows signs of weakening. Altcoins have been underperforming compared to Bitcoin (BTC), with BTC dominance rising even as its price declines. This movement suggests that funds are migrating from altcoins to Stablecoins or BTC, leaving the altcoin market more vulnerable.
🔍 Adjustment cycles are normal
During BTC's bull cycles, it’s common for altcoins to lose part or even all of their recent gains. While BTC maintains high price levels, many altcoins give back previous highs.
📉 December and market uncertainty
Historically, December is known for market indecision. For instance, in December 2020, XRP gave back all the gains it achieved in November, recovering only in February 2021. These movements are often driven by Market Makers, who push prices down to liquidate positions, trigger stop losses, and generate fear before a new rally begins.
⚠️ Risk management is key
Altcoin bull and bear cycles tend to be short, making profit-taking a challenge. Diversifying between BTC, altcoins, and stablecoins is crucial to reduce risk and capitalize on opportunities.
💡 Stay alert to market movements and protect your capital.
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