“Altcoin short-term peak signals are frequent, how to avoid risks in December’s pullback?”
Today is December 8, as a key point in December, historical data often shows that after entering the middle and late December, the market will experience a certain pullback. The current market situation also confirms this, altcoins performed flat over this past weekend, and most coins did not see significant gains, even showing signs of a short-term peak. Based on this, I suggest everyone to close positions on those weakly performing altcoins as soon as possible, lock in existing profits, and reduce potential risks.
The reason I published this post is based on sufficient technical reasons: many altcoin indicators have shown peak signals, such as the TD indicator’s daily line 13 peak, with typical representatives being ALT and Auction. In addition, there are some coins like TIA and SOL that have attempted multiple breakthroughs without success, or are unable to effectively rise due to heavy long positions. At the same time, Meme coins were active and surged over the weekend; such sudden movements often indicate a shift in market hotspots, masking signs of adjustments or pullbacks in other coins.
From the mainstream market perspective, the shorts in BTC and ETH have begun to gradually accumulate pressure. Although overall, mainstream coins are unlikely to experience significant declines, there might be slight pullbacks or sideways consolidations in the short term. In contrast, altcoins carry a higher risk and may face a more severe reshuffle. Meanwhile, with Christmas approaching, the US market may see some funds cashing out, further exacerbating adjustment risks.
Although the overall trend of the bull market has not yet ended, ETH and its ecosystem’s altcoins still possess huge explosive potential in the future, but at the current stage, holding onto chips and waiting for the right opportunity is clearly a more prudent strategy. Risk management is a must for every investor.
It should be particularly noted that my analysis may not be completely accurate, and market conditions may “slap back.” But I always follow my judgment and plan to gradually clear out weakly performing altcoin positions before the end of next week (i.e., December 15), leaving at least 30%-40% of the position free to better protect funds and wait for opportunities.