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this cycle has been way harder than the previous ones because of one very specific thing:
brutal liquidity rotation
as most participants at this point understand, there are a lot more coins now than in 2013, 2017 and 2021
the thing is, most people who say this also say that there won't be an altseason because of this
but in my opinion they will be wrong
what this does is a different phenomenon: it makes every liquidity rotation way more apparent than before
in 2021, as in all cycles, BTC pushed first, ETH pushed second, majors followed and finally lowcaps gave us "altseason"
the thing is: when liquidity rotated let's say from ETH to majors, corrections were way less prominent because we had less coins
what is happening now is the exact same thing but since the market is diluted you feel it way more
check this out:
the first major leg we had this cycle was, obviously, led by BTC (check chart)
$BTC went on a parabolic run from Dec 2022 to Jan 2025 and then we had our first major correction in the year post halving (usual rotation year)
this correction was when dynamic shifted
BTC corrected 30% while ETH corrected 70%
this lead to a big emotion shift in the entire market
everyone started screaming that ETH was dead and that there was no way that it would come back this cycle
and, of course, as we saw peak $ETH fud, ETH came back from the "dead" and rallied 250% since the April lows to August peak while BTC only went up 70%
as I said, dynamic shifted
what is funny now, is that we are seeing the exact same thing but related to #Altcoins
in the recent correction we had in 10/10 most alts were crushed, with a lot of them being down 70% since August peak while ETH is only down 30%
you see what is happening?
now everyone is in pure denial towards $altcoins
they hate them, they swear next cycle they won't buy them, only bitcoin
there is zero hope for altcoins
just like there was zero hope for $ETH at the April lows
just by using basic logic, simple TA and emotional understanding
you can probably guess what happens next
to add to this, leverage this cycle has been a huge problem which also led to bigger emotional swings
what's your opinion?
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