Do you do TA on alt coins? I do it on BTC and trade market sentiment on alts.
Do you do TA on alt coins? I do it on BTC and trade market sentiment on alts.
I have recently observed no matter how good your TA is, it doesn’t always work on alt cos most alt price direction is impacted by BTC price.
When BTC is up all other coin move up. So why spending time on doing technical analysis on alts when doing it on BTC gives you a potential clue of most assets price direction?
You are not wrong at all, other coins are following bitcoin price prediction but you still have to analyze the altcoins. This is how I do it, I first check the price of bitcoin and followed by checking the price of the altcoins. This helps me to make good decisions for trading. But trading altcoins generally is very risky.
It is very risky because sometimes bitcoin price movement can be different from altcoins sometimes. As bitcoin price will be increasing, there are sometimes that the altcoins price that you take can decrease. Also as bitcoin price is decreasing, you can see the price of altcoin that you trade to be increasing. If you are a day trader or a scalper, you will notice this.
Altcoins are more volatile and your trades can be frustrating you at times. Good not to use leverage with most altcoins because they are very risky.