๐ฅWHY ALTCOINS FOLLOW THE BTC PRICE? A FULL GUIDE FOR TRADERS!
๐ฅHi, friends! I will explain why altcoins are following BTC and how traders can take advantage of this idea.
The first and main crypto is Bitcoin. I am sure that 99% of traders/investors discover crypto through BTC.
๐THE 4 MAIN REASONS WHY ALTCOINS FOLLOW BTC:
๐ฅBitcoin is the most influential cryptocurrency: As the first cryptocurrency and the largest by market capitalization, Bitcoin has a significant impact on the entire cryptocurrency market. The price of Bitcoin often affects the prices of other cryptocurrencies, and it can cause other altcoins to rise or fall in value.
Therefore, it's essential to keep a close eye on Bitcoin's price if you're trading altcoins, as it can indicate market trends and potential opportunities.
๐ฅ Altcoin prices are correlated with Bitcoin: Many altcoins have a strong correlation with Bitcoin's price movement. This means that if Bitcoin's price is rising, it's likely that the value of altcoins will also increase. However, if Bitcoin's price falls, altcoins are also likely to experience a decline in value.
As such, tracking Bitcoin's price can provide valuable insights into the behavior of other cryptocurrencies in the market.
๐ฅ Bitcoin can act as a safe haven asset: During times of market volatility or economic uncertainty, Bitcoin has historically acted as a safe haven asset. This means that investors tend to flock to Bitcoin as a way to store value and protect their investments.
As a result, Bitcoin's price can rise during times of crisis, and this can have an impact on altcoin prices as well. By monitoring Bitcoin's price, traders can gain insight into market sentiment and adjust their trading strategies accordingly.
๐ฅ Bitcoin is a market indicator: Bitcoin's price is often used as an indicator of the overall health of the cryptocurrency market. For instance, if Bitcoin's price is rising, it may indicate that the market is bullish and that investors are optimistic about the future of cryptocurrency.
On the other hand, if Bitcoin's price is falling, it may suggest that the market is bearish and that investors are taking a cautious approach.
By keeping an eye on Bitcoin's price, traders can gain a better understanding of market trends and make more informed decisions when trading altcoins.
โ HOW TRADERS CAN USE THIS BTC-ALTCOIN PATTERN
I made 4 simple comparisons for you to show it. I used Bitcoin (as #1 crypto) and ETH (#1 altcoin). Take a look on the chart and the numbers on it.
๐ฉ 1st case. If BTC falls at the beginning of the bull market = altcoins fall so much.
In the first case BTC fell by -60-65% and ETH fell by -70-75%. It's not too much for ETH, but you can check the other alts. They fell by -85-90%.
๐ฉ 2nd case. After the long consolidations altcoin grow higher than BTC.
BTC made +35%, but ETH made +81%. It's 2 times bigger than BTC.
๐ฉ 3rd case. BTC and altcoins during the rally grow equally. Except for some skyrocketing crypto as AXS, SOL and etc, of course.
+452% for BTC and +480% for ETH.
๐ฉ 4th case. New ATH is a time for altcoins' pumps. This is the time when they grow by 300-400% in a few weeks.
As you see, BTC made +5%, but ETH +157%!
๐ฅSUMMARY. So, the 2nd case (after the consolidation) and 4th case (at the new ATH) is the best to catch strong altcoins movements for a hundred percent% and 40-50 or even 100RR. Now you can use it in your trading, cause you will know what BTC do now and how it will affect altcoins.
I hope this idea was useful for you. Do you have your own notes? Write your most profitable BTC-atlcoins patterns in the comments!
๐ปFriends, press the "boost"๐ button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
The first and main crypto is Bitcoin. I am sure that 99% of traders/investors discover crypto through BTC.
๐THE 4 MAIN REASONS WHY ALTCOINS FOLLOW BTC:
๐ฅBitcoin is the most influential cryptocurrency: As the first cryptocurrency and the largest by market capitalization, Bitcoin has a significant impact on the entire cryptocurrency market. The price of Bitcoin often affects the prices of other cryptocurrencies, and it can cause other altcoins to rise or fall in value.
Therefore, it's essential to keep a close eye on Bitcoin's price if you're trading altcoins, as it can indicate market trends and potential opportunities.
๐ฅ Altcoin prices are correlated with Bitcoin: Many altcoins have a strong correlation with Bitcoin's price movement. This means that if Bitcoin's price is rising, it's likely that the value of altcoins will also increase. However, if Bitcoin's price falls, altcoins are also likely to experience a decline in value.
As such, tracking Bitcoin's price can provide valuable insights into the behavior of other cryptocurrencies in the market.
๐ฅ Bitcoin can act as a safe haven asset: During times of market volatility or economic uncertainty, Bitcoin has historically acted as a safe haven asset. This means that investors tend to flock to Bitcoin as a way to store value and protect their investments.
As a result, Bitcoin's price can rise during times of crisis, and this can have an impact on altcoin prices as well. By monitoring Bitcoin's price, traders can gain insight into market sentiment and adjust their trading strategies accordingly.
๐ฅ Bitcoin is a market indicator: Bitcoin's price is often used as an indicator of the overall health of the cryptocurrency market. For instance, if Bitcoin's price is rising, it may indicate that the market is bullish and that investors are optimistic about the future of cryptocurrency.
On the other hand, if Bitcoin's price is falling, it may suggest that the market is bearish and that investors are taking a cautious approach.
By keeping an eye on Bitcoin's price, traders can gain a better understanding of market trends and make more informed decisions when trading altcoins.
โ HOW TRADERS CAN USE THIS BTC-ALTCOIN PATTERN
I made 4 simple comparisons for you to show it. I used Bitcoin (as #1 crypto) and ETH (#1 altcoin). Take a look on the chart and the numbers on it.
๐ฉ 1st case. If BTC falls at the beginning of the bull market = altcoins fall so much.
In the first case BTC fell by -60-65% and ETH fell by -70-75%. It's not too much for ETH, but you can check the other alts. They fell by -85-90%.
๐ฉ 2nd case. After the long consolidations altcoin grow higher than BTC.
BTC made +35%, but ETH made +81%. It's 2 times bigger than BTC.
๐ฉ 3rd case. BTC and altcoins during the rally grow equally. Except for some skyrocketing crypto as AXS, SOL and etc, of course.
+452% for BTC and +480% for ETH.
๐ฉ 4th case. New ATH is a time for altcoins' pumps. This is the time when they grow by 300-400% in a few weeks.
As you see, BTC made +5%, but ETH +157%!
๐ฅSUMMARY. So, the 2nd case (after the consolidation) and 4th case (at the new ATH) is the best to catch strong altcoins movements for a hundred percent% and 40-50 or even 100RR. Now you can use it in your trading, cause you will know what BTC do now and how it will affect altcoins.
I hope this idea was useful for you. Do you have your own notes? Write your most profitable BTC-atlcoins patterns in the comments!
๐ปFriends, press the "boost"๐ button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
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