With the unparalleled success story of
- Scenario 1: Bitcoin goes up – altcoins bleed (throw your technical analysis out of the window)
- Scenario 2: Bitcoin gets dumped – altcoins bleed (Play waste paper basketball with your technical analysis)
- Scenario 3: Bitcoin runs sideways – altcoins perfom (Technical analysis works fine in the most cases)
We can see a 2:1 ratio, which makes a 33.33% chance of having altcoins perform well and keep up working with common technical analysis or fundamental events. The math is flawed though, as we need to include the total time of bitcoin within the three scenarios to put it into perspective. Almost the whole year was in bull run mode, with a few flash crashes inbetween and very small sideway movement cycles, so our % goes down the river even more. But try to keep things in perspective! No one likes red dildos – sure, though you have to keep in mind you are trading your alts against Bitcoin. A chart shows you a relation – how much increases for example XRP in relation to BTC.
If BTC gets stronger and stronger you will likely see red numbers with XRP, if there is nothing on the XRP side that strengthens its value in a similar % range than Bitcoin grows. So if you are panicking by seeing your altcoin portfolio, initially purchased for a total worth of 1 BTC, dropped to a value of only 0.8 BTC suddenly – check the $ value. If you are in a store and want to purchase a coffee – do you pay with BTC or $? Right! In real life, fiat is still king and it can be calming to keep things in perspective. On the other hand all coins are shitcoins, only to be traded to generate more Bitcoins, but things will stabilize one day, sooner or later.
The market goes up and down in an endless cycles. If you trade only high profile altcoins and no useless shitcoins like
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