The core problem with altcoins in this bull market is their lack of sustainability. 90% of the altcoins on the market now share the same pattern as LPT: they rebound a few dozen points from the bottom, looking quite exciting, only to fall back down again shortly thereafter.
Even more devastatingly, these rebounds often break through so-called resistance levels, giving many retail investors the illusion that a key breakout point signals a trend. Many impulsively jump in, only to see the market plummet back to its starting point the next day. Repeatedly, retail investors repeatedly cut their losses, gradually losing their principal.
When everyone's lost most of their money, another altcoin rally, lasting a month, arrives. At this point, retail investors, thinking, "This time, it's really going to be big," re-invest in the market, only to find themselves trapped once again.
If this trend continues, the number of altcoin investors in the cryptocurrency market will dwindle, and everyone's funds will eventually be concentrated in the top few mainstream coins. Market polarization will then become increasingly pronounced, making altcoin trading even more difficult.
