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#Altcoin traders: Where do we go from here? When I was learning TA and shit was dumping, I always went to my favorite CT accounts to get their take. This is a short thread and here's my plan. This thread mainly pertains to $ALTS in general. $BTC $ALTS $ETH
So I'll give my plan in the short term since shit is dumping quickly right now. After that I'll give thoughts on what I think could happen over the next few weeks. Here's a thread I made yesterday and I thought that more pain could come to $ALTS https://twitter.com/AltcoinSherpa/status/1287385693975650304
Short term: I expect $ALTS to have a lot of volatility. If you are currently in an #Altcoin position, you probably got stopped out. If you're holding deep underwater right now (I have this for 1 alt), I'm planning on selling on a bearish retest. I expect alts to have relief
in the short term (maybe today or tomorrow) before more potential pain (more on this later). I'm probably going to sell $DNT here at a decent loss (already stopped out otherwise on others). Of course, these techniques are risky and requires experienced management IMO.
If you are NOT in $ALTS and got stopped out: I still think that there are dip buying opportunities. That said, it'll depend on the type of trade you want to take. The #IEO coins are having great moves and bounce backs today. I'll talk a bit more about the swings later. $ONE
Ok so where does that leave us on a more macro level? Here's a thread I wrote a month ago about how long I thought we had for the good times with $ALTS. My prediction was that alts would probably start to pull back around now. https://twitter.com/AltcoinSherpa/status/1272538272972124160
(I was actually wrong so far in my prediction for the summer pullback, it's been the opposite so far. That said, $ALTS are currently feeling the pain regardless). We will see what comes though. I digress...
The next part of this thread will be about longer term #Altcoin swing trades. Many of these $ALTS were going up 5-20% each day over the course of several weeks. Trading was 'easy' and people got rich. What about those alts+ what's going to happen in the next few weeks?
Anyways, $BTC price action is very key right now, probably the most important thing to watch for. #Bitcoin 
has been long consolidating and it now looks like the move is up. There are 2 scenarios that I see in play for us as #altcoin traders, both bullish for $XBT.
has been long consolidating and it now looks like the move is up. There are 2 scenarios that I see in play for us as #altcoin traders, both bullish for $XBT.
Scenario 1: $BTC rips up to 11.5k quickly and spikes everywhere. This would result in #Altcoin slaughter IMO. I'd assume if this happens, $ALTS may go back to 2019 days in the summer and just capitulate/that's it until Q4 of 2020.
Scenario 2: $BTC grinds up to 11.5k and ranges within this area for a few weeks, giving $ALTS room to breathe and continue moving up. This would be a nice relief and allow people to trade.
More on the $BTC dominance part for #Altcoins, I see it going 2 ways (similar to #Bitcoin PA). We'll see if there's more pain to come or if alts will continue their bullish trends.
PA). We'll see if there's more pain to come or if alts will continue their bullish trends.
The point I made in my thread yesterday still stands for many $ALTS: Many still have bullish structures. In terms of the swing positions many have enjoyed the last few weeks, I could see some C&H going for some alts. Some consolidation over the next few weeks/months
and this would result in a big Q4 move, similar to the last several years. Here's $ZIL for example, something like this could play out. Regardless of what BTC does, these ARE still undeniably reversal structures for $ALTS. Many have also bottomed out relatively.
In terms of $ALTS still having massively bullish moves over the next few weeks- I'm still conflicted on that. Something like this for $STRAT may make sense if $BTC is able to range a little. If BTC goes nuts, I could see #STRAT going back to the eternal range for a while.
My plan on selecting $ALTS would be to choose the ones that are showing the most strength rn: #IEO coins ( $TROY is saving me), #DeFi coins, $ETHBTC. Other strong ones like $LINK are not going to go to 0.
I could be entirely wrong with my idea of $ETHBTC being a catalyst for the #altcoin market. Traditionally, $ETH is a healthy sign for $ALTS and #ethereum has just created a HH w. the BTC pair. I thought this would be great for $ALTS in the summer but I'm prepared to be wrong
1 other interesting observation during this big $BTC run (in relation to #Altcoins) is that many ALT/USD pairs have fallen hard (many of them). This is different than other pumps, where BTC and alt/usd price have a positive correlation.
Ofc this is not true for all $ALTs bc many of them are green today (those are the USD pairs I'll be looking to trade I think). My guess is that all of that alt/usd liquidity is just FOMO-ing into BTC perhaps.
Anyways, this was a bit longer than I wanted it to be but I thought that people would want some thoughts on the market overall. My plan is this:
1. Watch BTC price. If it's blitzing to 11.5k, I'm going to go hands off $ALTS. Will close everything out.
1. Watch BTC price. If it's blitzing to 11.5k, I'm going to go hands off $ALTS. Will close everything out.
2. If it looks like $BTC might grind up, I'm going to look to trade $ALTS in a short term manner. THIS IS NOT Q4 or Q1 trading #altcoins. TAKE PROFITS QUICKLY and have reasonable targets. No more "+50% is my first TP area". Take those 2-10% gains and enjoy them.
In this scenario where $BTC grinds up, I'll be looking for the HTF bullish coins like $XLM and what have you. Those should still continue higher. Dead majors that haven't moved like $XRP might do well too eventually but who really knows.
3. The $alts that I do choose to trade will be the stronger ones. While the hidden small cap 'gems' are still going to have the few 100xers, I'm going to trade those for liquidity and safety. The strongest alts are the best insulated. ie. $LINK or #IEO coins.
4. This is a good reminder for everyone to always have exposure to $BTC, don't ever go 100% into $ALTS or even 50% IMO. Despite me trading #Altcoins a ton, I still keep well over 70% of my portfolio in $BTC and $USD.
5) As always, be sure to take profits, keep your stop losses, and stay fluid with your trading plan. Please let me know what you think of this thread. Stay safe out there.
