- Positioning for altcoins? These bearish signals call for caution.
- The altcoin season index slipped below 50%, marking a new monthly low.
Altcoins are in massive discounts after the recent market sell-off following Bitcoin’s [BTC] correction.
These discounts have seen some analysts call for ‘buying the dip.’ But on-chain analyst and Alphractal founder, Joao Wedson, has sounded a warning to altcoin traders. He said,
“The best strategy is to stay in Stablecoins, not BTC or any Altcoins. The recent performance and dominance trends aren’t favorable. The ideal exit was when BTC was above $106k —time to exit everything!”
Source: Alphractal
Wedson cited an uptick in Bitcoin vs altcoin positioning which meant more capital flowed from altcoins to BTC and stablecoins.
Is it time to buy altcoins?
According to Wedson, BTC dominance marked a bottom above 54% and could strengthen for the next few weeks and months. He projected the scenario as ‘terrible for altcoins.’
He added that the altcoin scenario was even worsened by the BTC dominance 90-day change turning positive for the first since the wild altcoin rally in November.
