$BTC

Strategy "Pull BTC - Dump Alt"

1. The BTC price increase phase BTC (Pull BTC)

• BTC is pushed up strongly → market confidence increases.

• Altcoins are starting to rise slightly along with BTC.

• The FOMO mentality appears, investors think altcoins are about to explode.

2. Investors start Long Altcoin

• Based on the expectation of an "Alt season."

• Margin/Futures are heavily used for altcoins.

3. BTC is being dumped heavily

• BTC dump suddenly → the market panics.

• Altcoin dump heavier due to high leverage.

• Liquidate a large number of altcoin Long orders.

4. Result

• Market makers profit by shorting altcoins or pumping the price and then selling.

• Retail investors are facing heavy losses.

Prevention strategy

• Do not Long altcoin when BTC is rising too hot.

• Monitor BTC Dominance: if it increases strongly → altcoin may not be in season yet.

• Always use stop loss and allocate capital reasonably.

• Observe Funding Rate: if it is too positive in altcoins, it may be a "trap".