There is a need to scale out of altcoins, Micha\u00ebl van de Poppe says, and in no small part because the assets are at their peaks. The crypto analyst has been making the case for caution in a bullish cycle; even as altcoins put up good numbers in the present bull market, he wants traders to understand that this is not a trend to be taken for granted.<\/p>\n
\u201cRational decision making is what is called for,\u201d says van de Poppe, \u201cparticularly when you see prices going to new highs.\u201d He advises traders to increase their cash holdings as altcoin prices rise and to watch for any sign of Bitcoin starting to outperform.<\/p>\n
Take Chainlink for instance. It reached its peak in 2021 in US dollar terms but did so against Bitcoin in 2020, a year earlier. Van de Poppe sees this as evidence that an altcoin can underperform Bitcoin and that it is unwise to hold on without taking some profit.<\/p>\n
In the altcoin market, one will see vertical movements, or sharp upward moves, and van de Poppe urges traders to watch for them as a sign that Bitcoin is about to take the lead. Demand for altcoins tends to fall off once that happens, and those who have not adjusted their portfolios will be the ones to suffer losses. The prudent course is to put money where it is safer, in cash or in Bitcoin, to offset the risk of a correction.<\/p>\n
With altcoins at these levels, the risk is elevated. A sensible thing to do is to build up cash in the portfolio as prices rise. That keeps a trader in a position to deal with whatever comes. And should there be a broader correction, say at the turn of the year, van de Poppe intends to put more of his own into Bitcoin. In his estimation, it is the way to protect one\u2019s gains and get ready for the next leg of the cycle.<\/p>\n
This article reflects the channel author\u2019s opinion and is not investment advice.<\/em><\/p>\n Every call by Micha\u00ebl van de Poppe and how it played out \u2014 in the BuyCrypt bloggers tracker<\/a>.<\/em><\/p>\n Source \u2014 Micha\u00ebl van de Poppe: https:\/\/www.youtube.com\/watch?v=MiQePVTGCXQ<\/a><\/em><\/p>\n <\/p>\n Enhance your skills in altcoin trading and Bitcoin strategies with our risk-free trading simulator. Practice altcoin trading<\/a>.<\/p>\n <\/p>\n