Since Bitcoin (BTC) dominates the crypto market cap and sets the trend, it’s crucial to analyze BTC before executing trades in altcoins. Here's a refined crypto trading strategy based on your insight:
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Crypto Trading Strategy: BTC-Led Altcoin Entry
**1. BTC Analysis First – “The Market Leader”
Trend Direction: Use daily and 4H timeframes to determine if BTC is bullish, bearish, or ranging.
Uptrend: Higher highs and higher lows
Downtrend: Lower highs and lower lows
Sideways: Consolidation with volume drop
Key Levels: Mark support/resistance, trendlines, and Fibonacci retracement zones.
Indicators: Use RSI (divergence), MACD crossover, and volume spikes.
News and Macro Factors: Monitor FOMC decisions, ETF flows, regulatory news.
**2. Correlation Check
If BTC is pumping, alts may lag slightly before following.
If BTC is dumping, most alts will dump harder — avoid long entries.
Neutral BTC + strong altcoin news = good entry window for selective trades.
**3. Timing the Entry (Altcoin Focus)
Only trade alts when BTC shows stability or upward momentum.
Identify altcoins with:
Strong volume spikes
Bullish breakouts or patterns (flags, triangles, cup and handle)
News catalysts (partnerships, upgrades)
**4. Risk Management
Entry only after BTC confirms support or breaks resistance.
Stop-loss below key altcoin structure support.
Risk 1-2% per trade max.
Always set a trailing stop if in profit — BTC can reverse anytime.
**5. Exit Strategy
Monitor BTC continuously — if BTC shows weakness, start exiting alt positions.
Use TP1, TP2 strategy with partial exits at resistance zones.
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