As the cryptocurrency market faces another bearish scenario, bearish sentiment is once again on the rise. Some investors seem to fear that altcoins will not take off in this cycle and that they have missed their chance to cash in on the rally. However, popular analyst Altcoin Sherpa has shed light on the matter, suggesting that the market is poised to “perform well” in the coming months.
What makes this course different from others?
A few months ago, Altcoin Sherpa addressed the pessimistic sentiment brewing among some segments of the crypto community. In a post on X, the analyst emphasized that Altcoin had to “cool down” for a few months before resuming its bullish trajectory. He also emphasized that this cycle is different from previous ones.
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At the time, Sherpa highlighted that altcoins underperformed during the early part of the rally. Additionally, he noted that the market was heavily impacted by the abundance of projects and fragmented liquidity. In this cycle, a few sectors such as memecoins and AI tokens mostly captured the attention.
In a new X topic, Sherpa Reaffirm “It’s definitely been a weird cycle so far; it doesn’t look anything like 2021 or 2017,” the analyst said, noting that crypto investors “are not really in a big bull run” despite Bitcoin (BTC) approaching its all-time high (ATH).
Because of the uniqueness of this cycle, it is no longer possible for an analyst to recommend “DCA and keep projects you like forever.” The overabundance of tokens makes predicting cycle winners “extremely difficult,” making “picking your undesirable coins very important.”
As a result, the analyst suggested that investors learn some trading concepts, study momentum, and understand market dynamics. For Sherpa, understanding the market is key, “now more than ever,” so investors can prepare “for when the market really starts to move later this year.”
But I think slow times like these are when it’s important to learn and educate yourself for the next moves.
Cryptocurrency Market Is Down But ‘All Hope Is Not Lost’
Sherpa asserted that the cryptocurrency market will resume its bullish performance in the coming months. “The good thing is that Bitcoin will still be able to break its highs later this year, and Ethereum will also do well,” the post read.
The analyst disagreed with those who believe that altcoins will experience an alternate season reminiscent of previous cycles and that we are at the beginning of a bull market. For him, it is highly unlikely that all altcoins will reach “a full peak like in 2021” or even 2017.
Despite the differences between cycles, he believes that most cryptocurrencies will perform decently compared to current prices. Moreover, he believes that some altcoins will see significant gains.
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In the post, Sherpa predicted that the cryptocurrency market will see massive growth in the fourth quarter, as it has historically done. Ultimately, it seems that investors will have another chance to take advantage of the bull market:
As I said, hope is not lost yet. We are going to have a huge Q4 as always. The macro environment should be strong and Bitcoin should break all-time highs, setting the stage for a huge November-January period. You’ll be lucky if you get another chance in this bull market.
Featured image from Unsplash.com, chart from TradingView.com