98% Of Altcoins Topped Market Cycle, Bitcoin In Transition: Andrew Kang

Mechanism Capital founder Andrew Kang believes that almost all altcoins have reached the top of their market cycle. In contrast, he said Bitcoin (BTC) is in the middle of a transition amid latest price onslaught.

Kang Spots Bitcoin Market Inflection Point 

In one of his recent X posts, Kang referenced an earlier statement he made about a week ago, citing crypto market performance.

The analyst noted that Bitcoin has led the crypto market to reach an inflection point. This comes after sustained periods where trading behaviors become instilled and constantly rewarded. In the post, he highlighted a commonly occurring mistake in the crypto sector. This involves buying crypto assets too early when the trend has inflected from top to bottom.

The most common mistake you see in crypto markets is buying too early when the trend has inflected from up to down

Corrections from big market structure breaks are always deeper and longer than most expect

You do not buy when a few people are bearish 10% off BTC highs. Some… https://t.co/8vLwKXBa4G

— Andrew Kang (@Rewkang) July 7, 2024

In Kang’s opinion, corrections from big market structure breaks goes way deeper and longer than is usually expected. His advice to investors and traders is to buy Bitcoin and altcoins for the next cycle when every other person is liquidated, rather than when a few people are facing a bear sentiment.

An X user reacted to Kang’s post, citing that his comments suggest that the current cycle is over. Furthermore, he asked him if there was no point in buying any token anytime soon.

To this end, Kang voiced his stance about 98% of altcoins topping the market cycle. Although not with any specifics, he suggested that there were only a few coins that would reach a new high either by Q4 2024 or Q1 2025.

Spot Ethereum ETF Trading To Trigger Price Surge

Notably, the number one altcoin Ethereum (ETH) is not likely to fall into the first category that Kang described. The crypto industry is currently expecting the United States Securities and Exchange Commission (SEC) to approve spot Ethereum ETF trading.

Analysts and market observers are optimistic that the SEC’s decision will come within the next two weeks. Should this happen as expected, ETH is likely to see a new mega rally. At the time of this writing, the altcoin was trading at $2,998.67 with a 1.64% drop within the last 24 hours. The price of ETH is expected to climb to $3,800 and even higher in the short term per projections.

Kang acknowledged that Bitcoin is currently in a transition phase to a “supercyclish asset.” However, it is not yet certain which way the coin will go at this point.

Read More: Chainlink Price Analysis Hints $20 Rally Amid Whale-Driven Momentum