Strategy "Pull BTC – Dump Alt"
1. BTC Price Increase Phase (Pull BTC)
• BTC price rises sharply → market confidence increases.
• Altcoin starts to rise slightly following BTC.
• FOMO mentality appears, investors think altcoins are about to explode.
2. Investors Start Longing Altcoin
• Based on expectations of "Alt season".
• Margin/Futures are heavily used for altcoins.
3. BTC is Suddenly Dumped
• BTC dumps suddenly → market panics.
• Altcoin dumps harder due to high leverage.
• Mass liquidation of Long altcoin orders.
4. Results
• Market makers profit by Shorting altcoins or pushing prices up and then selling.
• Retail investors suffer heavy losses.
Hedging Strategy
• Do not Long altcoins when BTC is rising too hot.
• Monitor BTC Dominance: if it rises sharply → altcoins may not be in season yet.
• Always use stop loss and allocate capital wisely.
• Observe Funding Rate: if too positive on altcoins, it may be a "trap".