This article is a sequel to (Qingmei Zhubi: Bitcoin is approaching 100,000, why are altcoins still standing still?), and it is recommended to read it first.
The K-line chart used above is the total market value of altcoins, while this article uses the market value of the top ten altcoins removed. Let’s see what the differences are in the conclusions?
The red line in this figure is Bitcoin, and the candlestick chart is the market value of altcoins excluding the top ten, which is referred to as the altcoin market value in this article.
The market value of altcoins is also slowly increasing with the rise of Bitcoin, but the growth rate is slow.
The area marked in the figure is the Bitcoin retracement from January 8 to 21, 2021.
It can be seen that when Bitcoin first fell sharply, the market value of altcoins also fell sharply, with the largest drop being around 32%. However, altcoins stopped falling in two days and then rose rapidly, with the rise accelerating significantly. At this time, Bitcoin retreated and fluctuated for more than half a month. This shows that funds began to flow from Bitcoin into altcoins. When Bitcoin adjusted, Bitcoin and altcoins accelerated their rise again.
Bitcoin peaked on April 14, 2021 (the first major peak), and the total market value of altcoins peaked on May 12, a difference of about one month.
Before Bitcoin reached its peak, it had two major pullbacks, and the market value of altcoins followed suit, but the rebound speed was significantly faster than that of Bitcoin.
When Bitcoin peaked, although the altcoin plummeted by 35%, it quickly recovered and began to soar to the top, which was the most FOMO stage.
To summarize:
1. The start time of the altcoin season is around the time when Bitcoin reached its first peak and had a large retracement (it retreated 31% in early January 2021).
2. When Bitcoin experienced a sharp retracement, the altcoins also followed suit and even fell more sharply than BTC, but stopped falling earlier than BTC, and then quickly rose, with the rise significantly accelerating. The altcoin season has really arrived.
3. After Bitcoin reaches its peak, a sharp drop in Bitcoin will also lead to a sharp drop in altcoins.
4. After Bitcoin reached its peak, altcoins did not reach their peak, but they rushed to the peak frantically afterwards. This is the most fomo stage, and the peak time was about one month later than BTC.
Operational suggestions:
It is recommended to keep a base position in altcoins now. If there is a big pullback, cover the position. Try to do less swing trading and hold it for a longer time. This article is a sequel to (Qingmei Zhubi: Bitcoin is approaching 100,000, why are altcoins still not moving?), it is recommended to read it first.
The K-line chart used above is the total market value of altcoins, while this article uses the market value of the top ten altcoins removed. Let’s see what the differences are in the conclusions?
The red line in this figure is Bitcoin, and the candlestick chart is the market value of altcoins excluding the top ten, which is referred to as the altcoin market value in this article.
The market value of altcoins is also slowly increasing with the rise of Bitcoin, but the growth rate is slow.
The area marked in the figure is the Bitcoin retracement from January 8 to 21, 2021.
It can be seen that when Bitcoin first fell sharply, the market value of altcoins also fell sharply, with the largest drop being around 32%. However, the altcoins stopped falling in two days and then rose rapidly, with the rise accelerating significantly. At this time, Bitcoin retreated and fluctuated for more than half a month. This shows that funds began to flow from Bitcoin into altcoins. When Bitcoin adjusted, Bitcoin and altcoins accelerated their rise again.
Bitcoin peaked on April 14, 2021 (the first major peak), and the total market value of altcoins peaked on May 12, a difference of about one month.
Before Bitcoin reached its peak, it had two major pullbacks, and the market value of altcoins followed suit, but the rebound speed was significantly faster than that of Bitcoin.
When Bitcoin peaked, although the altcoin plummeted by 35%, it quickly recovered and began to soar to the top, which was the most FOMO stage.
To summarize:
1. The start time of the altcoin season is around the time when Bitcoin reached its first peak and had a large retracement (it retreated 31% in early January 2021).
2. When Bitcoin experienced a sharp retracement, the altcoins also followed suit and even fell more sharply than BTC, but stopped falling earlier than BTC, and then quickly rose, with the rise significantly accelerating. The altcoin season has really arrived.
3. After Bitcoin reaches its peak, a sharp drop in Bitcoin will also lead to a sharp drop in altcoins.
4. After Bitcoin reached its peak, altcoins did not reach their peak, but they rushed to the peak frantically afterwards. This is the most fomo stage, and the peak time was about one month later than BTC.
Operational suggestions:
It is recommended to keep a base position in altcoins now. If there is a big pullback, add to the position. Try to do less swing trading and hold it for a longer time. #BTC走势预测
