Everything is relatively calm on the market; Bitcoin has rolled back somewhat, but within the range that I spoke about this morning. So far around 61800-62000, which is very far from the lower limit of the range. The morning forecast is valid.
Now there is material that answers questions that I am often asked.
Yesterday I talked about the completely understandable prospects for Bitcoin.
What about alts, what prospects do they have?
If Bitcoin has simply not been growing since March, moving in the range of 58000-72000, then most alts are simply breaking through the bottom. Only memcoins and the AI sector are feeling normal.
Why so and what next?
Alts always rise after Bitcoin, this is how the market cycle works.
But if Bitcoin does not grow for a long time, then a situation arises when the number of people willing to buy alts ends. And many of those who previously bought them are selling them. The more alts fall, the more they are sold.
At the same time, when Bitcoin grows towards the upper limit of the range, alts grow weakly (since the more often Bitcoin bounces upward from the upper limit of the range, the more market participants expect that this will happen again. And alts are not bought.
And when Bitcoin falls to the lower limit of the range, alts fall sharply. Since, fearing that Bitcoin will leave the range downwards, they are drained first.
There will no longer be a massive increase in alts, as in previous bullruns. If only because there are too many of them, and there are more and more every day. The number of alts is growing much faster than the number of money. In this situation, diversification is evil; concentration is needed. Putting rotten eggs in leaky baskets is not a good idea.
You need to understand which market sectors are a priority and form a portfolio of representatives of these sectors.
Why is the meme sector, which has no application, growing stronger than the market, while high-tech alts that were listed on Binance are breaking through the bottom?
Because users are not interested in technology, they came for money. And all these high-tech “Ether killers”, as a rule, have murky unlocking and vesting schemes, heaps of funds that received tokens 10 times cheaper than the listing price, and therefore they don’t care at what price to drain, which they do with pleasure.
And in memes everything is clear. The entire volume goes to the markets, no funds or disconnects, the strength of the community, etc. It is clear that this will not continue forever, especially considering the speed with which memcoins are now being riveted. But the TOP of this sector will clearly feel better than the usual TOP alts.
Timing is extremely important when working with alts. When to buy and when to sell.
The key indicator is the dominance index. If some asset in the portfolio has not grown, despite the fact that the dominance index has fallen to 43-45%, then the horse is dead, get off it). Such an asset must be disposed of.
The main purpose of buying alts is to increase the amount of Bitcoin in the portfolio.
And a properly formed portfolio, which is formed on time and sold on time, will accomplish this task.
