A popular saying among crypto traders has been around for a while: “When Bitcoin gets thinner, money moves to altcoins.” But the reality is quite different, especially when you look at the recent charts of Bitcoin, Ethereum, Ripple, and Dogecoin. So, what really happens when Bitcoin corrects?
Bitcoin and its overall impact
Bitcoin is not just a cryptocurrency; it is a market leader. When it corrects from a high, the impact is often across the entire market. What the chart shows is that when Bitcoin falls from a high, it drags all other coins down with it, whether it is Ethereum, Ripple, or Dogecoin. In other words, the entire market is correcting at the same time.
What is the difference between a top correction and a bottom correction?
Correction from the top: When Bitcoin reaches high levels and then starts to correct, it causes a surge of fear among investors, leading to massive selling not only of Bitcoin, but of all altcoins. This is the current case as we see in the charts.
Correction from the bottom: On the contrary, when Bitcoin starts to rise from low levels (bottom) and then enters into minor corrections, altcoins may benefit from this situation. This is because investors are then more comfortable with the market, and look for higher growth opportunities in other currencies.
Evidence from charts
Bitcoin (BTC) chart: Shows a sharp correction from the top, reflecting a significant liquidity outflow.
Ethereum (ETH) chart: Following the same downward path, confirming that altcoins do not benefit when Bitcoin is in a corrective mode from the top.
Ripple (XRP) Chart: Also facing a simultaneous decline with Bitcoin.
Dogecoin (DOGE) chart: Its big drop shows that money is not moving into it as rumored.
Conclusion
For those who think that Bitcoin’s decline opens the way for altcoins to rise, think again. When Bitcoin falls from the top, it drags the entire market down with it. But when it corrects on its way up from the bottom, that’s when altcoins can thrive.
The digital market is not just theory; it is psychology and chart-backed investment strategies. So, don’t rely on assumptions; let the data and charts guide your decisions.
