Analyst EGRAG CRYPTO shared a warning for altcoin investors, pointing out misleading narratives about an ongoing altcoin rally. He presented data to support his claims.
Conflicting Timeframe Signals
EGRAG CRYPTO shared two charts showing different timeframes for the altcoin market. The first chart indicates that, in a long-term perspective, altcoins have not outperformed Bitcoin, with the index at 35, below the mark indicating their superiority. Conversely, the second chart reflects a shorter period, showing an index level of 82, suggesting an altcoin season in the short term.
EGRAG CRYPTO's Message to Traders
EGRAG CRYPTO urged traders not to blindly follow narratives from larger accounts without examining the details themselves. He highlighted that many market participants are misled into believing a full altcoin rally is underway, while the long-term data tells a different story. He emphasizes that while short-term charts may suggest strength in altcoins, the long-term data does not support their dominance.
Long-Term Outlook for Altcoins and Bitcoin
The analyst pointed out that altcoins have not held dominance for over 1,300 days. Historically, the average period where altcoins held dominance lasted only 18 days compared to Bitcoin's 19 days. Based on these comparisons, EGRAG CRYPTO concludes that traders should not expect sustained altcoin growth simply because the short-term index has indicated an altcoin season.
EGRAG CRYPTO's caution serves as a reminder of the need for a careful approach to investing in altcoins, particularly amid a volatile market and diverse interpretations of data.
