💱Assessing Bitcoin-Altcoin Cycle💱
The backbone of my personal crypto trading strategy is Bitcoin. This is simply because BTC’s price has a huge influence over the price of other cryptocurrencies. If Bitcoin dominance is going up, this means money is moving from altcoins into BTC. If Bitcoin dominance is going down, this means money is moving from BTC into altcoins. Once I’ve assessed Bitcoin dominance, I need to confirm that the market is headed in the direction that I think it is, and I use the total cryptocurrency market cap for that confirmation
I always stick to longer timeframes, and if I’m looking to buy or sell BTC, I start with the monthly and the weekly What I’m looking for here is a price pattern that could forecast future price action, and I reckon I see one on BTC’s monthly chart. Recently I’ve gotten into the habit of spotting what I like to call the topless letter P. This is when prices pump, pull back, and then pump again to the price of the initial pump
Once I’ve spotted a bullish pattern on the monthly, daily, or weekly, I set what I believe to be a realistic price target and take profits along the way as prices rise towards that target. Once I’ve taken some profits, I usually park them in USDC, though recently I’ve gotten into the habit of putting some of those profits into PAXG, which is a gold-backed token issued by Paxos. If I can see that prices have fallen beneath the Bollinger band range and the RSI is insanely low on the daily, this to me is the perfect buy the dip opportunity for BTC, ETH, and other large altcoins.
If we’re not in an altcoin season, I apply the same sell the top strategy I detailed in another video which I’ll leave in the description. However, if we are deep in an altcoin season and everything is pumping like mad, then the standard method of when I take profits can quickly become irrelevant. A great example here is Arweave’s AR coin which kept pumping, and pumping, and pumping against all odds. When an altcoin is doing this, I pay more attention to my percentage gains rather than the price or any indicators and patterns and take profits at certain increments (e.g. 50%, 100%, 150% from initial entry).
Whenever I happen to come across a new altcoin that seems to have some serious potential, I do as much research about the project as I can before I put down a dime. This because any new crypto investments I make are based primarily on the fundamentals of the project, and not so much on the technicals of that coin or token. Though not necessarily fundamental, another factor I look at before copping a new crypto to trade is its market cap. As I’ve mentioned many times before, the market cap of a cryptocurrency is ultimately what determines how high it could go, and not its sticker price, which can sometimes be deceptively low. I will typically buy as soon as I find out about the cryptocurrency’s potential assuming it’s not pumping like crazy. If it is, I wait for a pullback before entering my position.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.