Bitcoin is currently pulling value from altcoins as it breaks through long term resistance levels
You may have noticed that Bitcoin is rallying nicely today, but altcoins are struggling to get off the ground...
Bitcoin is breaking out of a long term downtrend as well as some horizontal resistance, which you might think is good for crypto as a whole right?
Not so fast...
There is a phenomenon in crypto affectionately known as the "Bitcoin Suck".
It's a situation where bitcoin runs up at the expense of the altcoins.
Bitcoin "sucks" value from the altcoin market as it surges higher.
(Source: https://www.coinbase.com/price/bitcoin)
But wait, I thought bitcoin going up was a good thing for altcoins?
It is, but sometimes not in the near term.
As mentioned above, sometimes when bitcoin starts running, and it usually happens when bitcoin starts moving up in big chunks as opposed to more "normalized" price action, value in altcoins tends to chase the bitcoin returns.
As bitcoin climbs higher, and money begins to chase those returns, altcoins fall out of bed.
It's not a fun time to be an altcoin holder...
However, there is light at the end of the tunnel...
Thinking about the bitcoin suck and the possibility that the run in bitcoin is just getting started, it may give you some bad feelings about holding your altcoins...
Let those bad feelings go.
There is an old saying in crypto...
"Bitcoin first, and then the altcoins"
Which basically means that bitcoin tends to outperform first, pull value from everywhere and go on a nice run, but then altcoins eventually join the party as well.
(Source: ~~~ embed:1258353667331284994) twitter metadata:ODg4VmVsdmV0fHxodHRwczovL3R3aXR0ZXIuY29tLzg4OFZlbHZldC9zdGF0dXMvMTI1ODM1MzY2NzMzMTI4NDk5NCl8 ~~~
It happens when new money tries to chase the returns in bitcoin by catching the 'next bitcoin'.
And it happens as people lock in their bitcoin gains by moving to altcoins.
The interesting part if you are an altcoin holder is that these cycles have yielded even bigger returns in altcoins than those holding bitcoin during the initial bitcoin surge...
Things like bitcoin running up 40%, bitcoiners rejoicing, only to have altcoins then run up 100-200% and altcoin investors getting the last laugh, is quite common.
So, if you are missing out on the party right now, try not to worry too much, there is a decent chance you will get your day in the sun soon enough.
Stay informed my friends.
-Doc
It was the first thing I noticed today when entering the CMC, the btc on the rise and rarely the alt NO. Very good explanation of what is happening. We await the new rise of HIVE.
Yea the Bitcoin Suck is not fun if you are altcoin holder... The bitcoin maximalists love it though.
I'm really glad that you explain that because I could not figure out the actions of the altcoin to the Bitcoin Rising. Thank you so much!
!tip
Glad I could help!
🎁 Hi @jrcornel! You have received 0.1 HIVE tip from @dswigle!
@dswigle wrote lately about: Nature At My Feet Feel free to follow @dswigle if you like it :)
Sending tips with @tipU - how to guide.
Thanks!
completely true lol, I was an altcoin holder until April 29th, when the Bitcoin suck started, so I accepted the loss to be all in bitcoin, and now waiting for a better price for my loved altcoins to go back to me, right now waiting a rise on bitcoin to 10.400 while getting a better price on alts... were you holding any?
If you glance at my wallet on here, yep I am holding quite a few. Outside of here, I only hold a handful of coins though not named BTC. I mostly subscribe to the theory that bitcoin is gold 2.0 and then the altcoins run during altseason. Just have to make sure you own the ones that run, which should be most within the Top 100 on CMC. Eventually an altcoin project will likely create real fundamental value, but they are still yet to really do that at this point.
that's right, and in fact I posted today a comparison between BTC, ETH and LTC, and found that on 2017 BTC had a 2000% rise since march 13th, while ETH had an 8900% and LTC 31000%, so pretty good, but nowadays it's differente, BTC and ETH are having talmost the same rise in percentage while LTC is behind, about 30 to 40% difference, I think that the only way to get another good benefit from alts if by having all of them going up (altseason), otherwise they will not give as good results as BTC could, just like in the past 2 years
Bitcoin first, and then the alts. I think we will that happen again here as well. Bitcoin brings in new money, eventually money flows into alts and they go way up.
The basics in the flow of capital. It is present in all markets of every sort.
Where is the money going?
For crypto, Bitcoin is the starting point since it is the one all know. For Alt-coins, it still comes down to utility. Those projects that keep making noise will get involved in the run at some point.
That is the major difference between now and 2017. I do not believe most altcoins will partake. Only those that are actual projects, trying to accomplish something will be included.
Posted Using LeoFinance
Looking at correlation charts, that is probably not going to be the case. Most of the top 100 still all go up and down together. Meaning that during an altseason all ships rise mostly regardless of fundamentals.
Fundamentals matter somewhat, but not as much as they should. Just need to get your project within the Top 100 on CMC and then wait for altseason.
"Bitcoin suck"
Is incorrect most altcoins have great centralization of assets most being 70%+ in a handful of holders which leads to market manipulation by means of wash trading spoofing and fake news
Hence Bitcoin has 67% of the market and the 2nd highest Ethereum only 8.7%
Not saying Bitcoin even has enough liquidity to not be manipulated easily by whales would prob need 10x before markets will be truly represented
The term "Bitcoin Suck" is describing what bitcoin does... IE, it sucks the value from altcoins when it starts running up, it's not a knock on bitcoin...
Didn't say it was, was referring to how altcoins projects are fake and market prices are artificial
Perhaps but that really doesn't have anything to do with what I am talking about here...
day in the Sun...
Justin Sun?
Lol no, literal sun.
@jrcornel Absolutely great article you've written! I hope this motivates all is altcoin hodl'ers to be patient rather than chase a BTC bull run. Totally reblogged ...thanks again Doc!
Thanks.
Always 😇
the action looks good in bitcoin finally and the Fomo when it hit $9999.99 on binance can be clearly seen well the halving as it approaches should be a great event to witness
We shall see.
And saying, The time is fulfilled, and the kingdom of God is at hand: repent ye, and believe the gospel.
Mark 1:15
Question from the Bible, Do you believe that the Bible is the complete and final word of God? [Part 4 of 4]
Watch the Video below to know the Answer...
(Sorry for sending this comment. We are not looking for our self profit, our intentions is to preach the words of God in any means possible.)
Comment what you understand of our Youtube Video to receive our full votes. We have 30,000 #HivePower, It's our little way to Thank you, our beloved friend.
Check our Discord Chat
Join our Official Community: https://peakd.com/c/hive-182074/created