The reason for the similarity in candles (or price movements) among most cryptocurrencies is due to several key factors:
1. Bitcoin Dominance
Bitcoin is the first and most influential currency in the market.
When its price moves (up or down), the rest of the market follows, as investors consider it the 'general market indicator'.
Even other strong projects are psychologically and behaviorally affected by its movement.
2. Bot Trading
Many trades are conducted through algorithms and automated trading programs.
These bots monitor market movements in general, not just individual currencies, which causes a similarity in reactions.
3. Market Liquidity
Most altcoins do not have high liquidity, so they are heavily affected by large buy or sell orders, especially when the market moves as a whole.
4. Emotional Reactions of Investors
The cryptocurrency market is largely driven by emotions (fear, greed, hope).
When a major currency drops, everyone feels fear and sells, which reflects on all currencies.
5. Joint Technical Analysis
Most traders use similar technical analysis tools (such as moving averages, support and resistance levels).
Therefore, you find that reversal points, candles, and patterns repeat across different currencies.
If you like, I can clarify this with real charts or examples of two different currencies and explain the similarity between their candles.
