[Analysis] "Altcoin rebound signals have disappeared… headwinds likely to persist for the time being"

JOON HYOUNG LEE

Summary

Altcoin market's rebound signals have disappeared, and Matrixport said weakness will persist.
Matrixport said the underperformance of altcoins even during a Bitcoin bull market is unusual.
They advised that investors should focus on the highest-quality names and prioritize strict risk management and sophisticated entry strategies.

There are expectations that the altcoin (cryptocurrencies excluding Bitcoin) market will be weak for the time being.

Crypto analysis firm Matrixport said on the 17th (local time) via its official X (X) account, "The recent cryptocurrency market capitalization has again shown a downward trend, and altcoin rebound signals have rapidly disappeared."

Matrixport noted, "It is historically unusual that altcoins have remained persistently weak even during a Bitcoin bull market phase." Matrixport said, "The short-term outlook for Bitcoin has even worsened compared to before, raising the likelihood that headwinds around altcoins will persist for the time being," and added, "In such an environment, investors should focus on the highest-quality names and prioritize strict risk management."

It also recommended, "There is a need to reduce reliance on simple long-term investing and dollar-cost averaging (DCA·Dollar-Cost Averaging)," and suggested, "The market has shifted to a phase that requires more precise entry timing, active positioning, and a higher emphasis on asset preservation."