Friends who are in alt coins, be careful!
Every time the bitcoin price dropped since the beginning of the month, altcoins were affected by this situation. Although the BTC price increased, altcoins could not recover to their previous levels and many of them lost their support levels.
Let's see together what are the reasons for this situation to occur.
1- Whales who entered the altcoin exited the market after making a profit and raised the price of bitcoin, which was void and had already fallen, with some of their money. If you look at the purchases and price increases in the last few days, you can see that the purchases were made by large and medium-sized whales and left the market after small-scale investors entered the market. This transaction took place 3 times in 5 days.
2- While the price is declining, the bitcoin/altcoin dominance index is not retreating. Bitcoin/dollar index is in an upward trend.
This situation shows us that the money coming out of bitcoin and altcoins goes to foreign exchange, that is, the market without volume is slowly reaching the support point and tends to make a correction.
3-Increase in funding rates and long position accumulation. No stock market wants to lose money like crazy to people in the futures market when there is a long accumulation, and this creates a burden on the market before the rise. You cannot increase the price without clearing these if there are not enough investors. Otherwise you will suffer losses.
For these reasons, I switched to 40 percent cash 4 days ago, when the first supports were tested in altcoins and experienced a recovery. Even if the market is on the rise, we have achieved 5x profit in most of the altcoins within 6 months. They will crush the altcoins a little more before Dominance releases itself.
I wish you all good luck. From time to time, I will share investor psychology and investment training for free. If you want more to come, don't forget to follow and like.
