How much money is flowing into the market mainly depends on two things: where Bitcoin is in its cycle, and whether altcoins can hold their gains after rising 🥸🤓
Market conditions have distinct seasons, just like spring, summer, autumn, and winter. When Bitcoin breaks out of consolidation and starts rising, that’s spring and summer. Altcoins tend to move smoothly during this period, and the strongest leaders emerge then, so you can trade as usual.
After Bitcoin has made a big move up and starts moving sideways near the highs, it’s autumn. There are lots of false breakouts among altcoins at this stage, so trade less. You can start identifying potential leaders for the next wave and wait until Bitcoin’s correction is over before trading.
If Bitcoin turns down and starts correcting, that’s winter. Winter is for hibernating, so you have to keep your hands off the keyboard. Breakouts are almost certain to fail during this period.
Next, check whether altcoins can hold their gains after rising.
If they rise smoothly and hold their gains, they’re tradable. But if they quickly fall back after a brief rise and can’t sustain the move, then pretty much every altcoin is a bad trade.
There’s another situation: the leaders and the laggards that catch up have all completed a rally, and the leaders start correcting. Don’t touch the other coins then—focus only on the leaders and wait for their correction to finish to see if there’s a second wave.
The second step is choosing the leaders. Every time Bitcoin rises, an altcoin leader will emerge. Put all your effort into finding that coin. Coins that only start rising after the leader takes off are catch-up plays. They’re definitely not as good as the leader, and which ones catch up is pretty random, so it’s best not to touch them!$BTC
Market conditions have distinct seasons, just like spring, summer, autumn, and winter. When Bitcoin breaks out of consolidation and starts rising, that’s spring and summer. Altcoins tend to move smoothly during this period, and the strongest leaders emerge then, so you can trade as usual.
After Bitcoin has made a big move up and starts moving sideways near the highs, it’s autumn. There are lots of false breakouts among altcoins at this stage, so trade less. You can start identifying potential leaders for the next wave and wait until Bitcoin’s correction is over before trading.
If Bitcoin turns down and starts correcting, that’s winter. Winter is for hibernating, so you have to keep your hands off the keyboard. Breakouts are almost certain to fail during this period.
Next, check whether altcoins can hold their gains after rising.
If they rise smoothly and hold their gains, they’re tradable. But if they quickly fall back after a brief rise and can’t sustain the move, then pretty much every altcoin is a bad trade.
There’s another situation: the leaders and the laggards that catch up have all completed a rally, and the leaders start correcting. Don’t touch the other coins then—focus only on the leaders and wait for their correction to finish to see if there’s a second wave.
The second step is choosing the leaders. Every time Bitcoin rises, an altcoin leader will emerge. Put all your effort into finding that coin. Coins that only start rising after the leader takes off are catch-up plays. They’re definitely not as good as the leader, and which ones catch up is pretty random, so it’s best not to touch them!$BTC