#AltcoinBreakout

The excitement surrounding alternative currencies that is happening right now is enticing, but those who closely follow the market know that something unsettling is occurring. We are witnessing rapid and random increases in many currencies without real support. That is to say, there are neither projects launched with new products, nor clear adoption, nor even tangible technical development; what is happening is an influx of speculative liquidity whose main goal is to create FOMO among new market entrants.

Bitcoin's dominance is declining, but that is not always a positive sign. Sometimes it indicates that investors are fleeing to risk because they want a quick gain, and that in itself is a dangerous indicator. We all remember previous hype seasons, after which we witnessed violent corrections that brought the market down by 70% or more.

The biggest problem is that there are many new entrants in the market right now who do not understand what they are buying, just a race for allure. People are entering currencies with momentary hype and thinking that profits are guaranteed. But those who follow the history know that whales are the first to exit, leaving you with losses.

The market is now in a phase of illusory overvaluation of value, and there is likely a correction scenario very close. So, those who are entering must be very aware and not chase after the trend just because the excitement is ongoing; it is not a health indicator.