ALT-season: Refer to ALT/BTC instead of ALT/USDT

[MrSpasybo 1049]

Over time we have seen the price of many altcoins (ALT) having extremely strong fluctuations, increases or decreases in large amplitudes without following the Elliott wave rules or Fibonacci support/resistance levels. This is making the community of traders very confused and many people are forced to use very strange methods such as "extended Elliott wave", butterfly graph, flag graph...

 

However, if we stick to a few market rules, it will be easier to understand those price movements.

In crypto community, many people have known the rule of USDT:BTC:ALT = 1:10:100. That is, in every volatile season, BTC/USD rate will increase 10 times, ALT/BTC rate will increase 10 times, and it follows that ALT/USDT rate will increase 100 times.

 

The numbers 1, 10, 100 are for illustration purposes only, because there are many tokens x10 only, there are many token x300. We can understand that during bullrun, in order to predict the ALT price, we should be more concerned with the fluctuation of ALT/BTC rate rather than the fluctuation of ALT/USDT rate.

 

Reason: BTC is still the crypto king and crypto market trend is still heavily dependent on BTC price, at the same time ALT/USDT is just the result of ALT/BTC x BTC/USDT.

By using the chart ALT/BTC and BTC/USDT, it is easier to evaluate the growth potential of the ALT/USDT.

 

Exception: This is not true of the short timeframe because there is a delay in converting the USDT:BTC:ALT balance. Several new tokens emerge are also heavily influenced by pump events.

 

ALT has always had better growth potential than BTC during the altcoin season. Are you using market analysis tactics based on ALT/BTC charts instead of ALT/USDT?

[Whited35 15285]

On 4/10/2021 at 4:46 PM, MrSpasybo said:

ALT has always had better growth potential than BTC during the altcoin season. Are you using market analysis tactics based on ALT/BTC charts instead of ALT/USDT?

Yeah, I often using the ALT/BTC pairs to make the market analysis instead of the pairs of ATL with the stable coins like USDT, DAI, BUSD, etc. I first check the market price of BTC in the cryptocurrency markets and choose the desired pairs against Bitcoin. We know, most of the ALTs follow the BTC in the markets to decide the selling pressure. 

[MrSpasybo 1049]

On 5/15/2021 at 7:46 AM, Whited35 said:

Yeah, I often using the ALT/BTC pairs to make the market analysis instead of the pairs of ATL with the stable coins like USDT, DAI, BUSD, etc. I first check the market price of BTC in the cryptocurrency markets and choose the desired pairs against Bitcoin. We know, most of the ALTs follow the BTC in the markets to decide the selling pressure. 

@Whited35 The problem for new investors is that when they check ALTUSDT, they will find that ALT price has gone too high and don't know which ALT to invest in. ALTBTC will provide them ALT's position during the altcoin season. If ALTBTC is very low it means ALT up phase is just getting started. Now I refer to both ALTBTC & ALTUSDT in my prediction model. This combination will give investors timely decisions to optimize profits.