Top Trader Is Selling His Altcoins Because Of These “Red Flags”

The altcoin market has been buzzing lately, but not everyone in the cryptonews thinks that altcoins have a potential to surge in the near future. The crypto assets that are not Bitcoin (which is what defines altcoins) have done extremely well over the past month. Still, one top trader is selling his positions because he believes that there are a couple of factors that may drive bearish action again.

As we can see from TradingView data, the percentage of the crypto market that consists of BTC has fallen to 64% (which is practically the dominance of Bitcoin) from an earlier high of 68%. This is a telltale sign that the altcoin market is strengthening and improving, and the 4% drop proves that there are many nice altcoins to follow.

However, one top trader is selling his positions and thinks otherwise. He started to deleverage his altcoin positions, citing the fact that there are “red flags” appearing in this side of the Bitcoin market.

A recent Twitter thread shows that the crypto trader with the moniker of “Pentoshi” announced that he will be reducing his exposure to altcoins by 75% for the foreseeable future, remarking that he thinks of focusing on Bitcoin moving forward.

Why is that?

Well, the top trader is selling his altcoin positions because of many reasons. For one, he explained that despite the strength seen in many altcoins over the past few weeks, he believes that it is unwise to be investing in non-Bitcoin assets so close to the halving. This has the potential to rapidly increase the BTC volatility, too. This volatility, as he explained, will result in “alts [getting] rekt.”

https://twitter.com/Pentosh1/status/1254136227395239939

Pentoshi continued bashing the altcoin news and the market, saying that these coins are always “a game of musical chairs” as the reasons they are rallying are mostly predicated on “red flags” as opposed to legitimate fundamentals.

“The reason the alt pumps are unconvincing is because they have followed the same patterns. IEO’s, Interoperability, privacy coins moving together. It’s coordinated as it has been the last 3 years instead of all ships rising together.”

https://twitter.com/Pentosh1/status/1254137891984420866

What is very interesting is the bearish action which is attracting many other investors, too. According to previous reports, Dan Morehead (head of Pantera Capital) wrote in their March newsletter that Bitcoin will “probably outperform other tokens for a while” and explained that it is one of the projects that are entrenched and do not rely on funding per se.