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📖 Day 1 · Quiz (Single Choic
#BTC Hits New ATH# #ETH Countdown To A New High# #Show My Alpha Points# There are currently obvious factors concerning Bitcoin that determine the further movement of the entire crypto market:
bitcoin at all-time highs;
the reversal of bitcoin is impossible without a long consolidation and distribution of positions by large players;
"lagging" movement of the altcoin market; after Bitcoin enters consolidation — capital flow from Bitcoin to altcoins.
The current phase of Bitcoin is transitioning into a wide consolidation range, while the current phase of altcoins is accelerating growth.
It is already quite obvious that the altcoin market is ready for acceleration.
Let's analyze the factors that prevent most market participants from capitalizing on the future growth of altcoins.
Time factor
As mentioned, the altcoin market is lagging behind after the rise of Bitcoin and correction waves.
In the screenshot, I present the chart of altcoin capitalization and the duration of correction phases.
This is exactly where the main trap for the market lies — entering on the impulse without waiting for a correction, the general impatience of the market.
The chart shows that the correction waves are becoming shorter in duration, indicating a market acceleration.
A more balanced and reasoned tactic of systematic trading is to assess the "strength" of the instrument after the first impulse during the correction phase ( or, in our traders' jargon, to enter on the "pullback" ).
This tactic is applicable for both medium-term and momentum trading.
No matter how strong the initial impulse is, it is difficult to predict, unlike the assessment of a reversal during a correction.
The factor of choosing the type of altcoin for trading
Conditionally, altcoins can be divided into the following groups based on their growth characteristics:
highly capitalized altcoins with harmonious wave growth ( are suitable for medium-term trading and investment );
pump-dump altcoins that show rapid non-retracement growth followed by almost complete reversal of that growth;
altcoins of the intermediate phase.
The incorrect definition of the altcoin type and the attempt to apply classical trading approaches to altcoins of categories 2 and 3 are the very obstacles to trend trading in the market.
In my impulse intraday trading, I combine strategies depending on the type of altcoin and the phase of ( growth or correction ) that the instrument is in.