Read on Twitter
Quick thread on #Altcoins pairs: Seeing a lot of questions on do I trade in ALT/USD pairs or ALT/BTC pairs? Well, what do you want to accumulate? Generally speaking, ALT/BTC pairs are going to suffer when $BTC looks really strong. Why is this?
Well, an ALT/BTC pair is literally altcoin price divided by #Bitcoin 
price. So for example, if $SNX goes up 1% but $BTC goes up 10%, your SNX/BTC pair is going to go down. #Altcoins can stay the same price in USD but go down heavily in their ALT/BTC pair. Example next...
price. So for example, if $SNX goes up 1% but $BTC goes up 10%, your SNX/BTC pair is going to go down. #Altcoins can stay the same price in USD but go down heavily in their ALT/BTC pair. Example next...
Look at $DOT during the Fall. Pretty much the same (relatively) in USD prices over months, DOWN huge in $BTC pair. What does this mean? It means you would have been better off holding #Bitcoin vs. #Altcoins (generally speaking).
vs. #Altcoins (generally speaking).
That's why "up in USD$" is such a meme- your #Altcoin might be up in USD but if it's down in the ALT/BTC pair, you would have been better off holding #Bitcoin . And when $BTC starts to really run, that's when ALT/BTC pairs typically suffer (see: the fall).
. And when $BTC starts to really run, that's when ALT/BTC pairs typically suffer (see: the fall).
When $BTC really runs hard, it often becomes a liquidity black hole for many #Altcoins. It's why I said over and over in December that $ALTS were not going to run super hard (as a market wide sector) until #Bitcoin was done doing its thing. And once it hit 40k, alts flew.
was done doing its thing. And once it hit 40k, alts flew.
So, IMO I think that if $BTC is going to make another strong leg up, ALT/BTC pairs are going to suffer a bit in the short term. I personally am just going to scalp most $ALTS and sell some of my bags that look a little topped out ( $SNX). Once #Bitcoin is done w. its run again...
is done w. its run again...
I expect there to be 1 more push for #Altcoins in the spring. Unsure if this move will be as strong as the 1 we saw in January but who knows. I would expect ALT/BTC pairs to do pretty well here and there to be a market wide pump. Until that time, there will certainly be some
$ALTS that outperform the market in terms of ALT/BTC pairs but overall, it might be better to be a bit more cautious. I'd also like to note: I expect ALT/USD pairs to do VERY well in this environment and I'm going to personally be trading more alt/usd pairs myself.
Not a good enough trader to trade $BTC but I think ALT/USD pairs are going to do extremely well in the coming weeks as long as bitcoin is bullish. ALT/BTC should be good to trade more after BTC is done with its run here.
Hope this helped, this thread is longer than I expected. I don't know how much longer we have overall, I might make a video over this. I'm guessing 4-8 weeks personally. Stay cautious and remember your principles: Take profits, use stops, don't FOMO. Good luck.
