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The Bitcoin bulls were beaten and battered throughout the ongoing bear market, but signs of momentum slowly began to return to the crypto market. As Bitcoin stabilized, the altcoin space warmed up, with many individual pieces taking part in important rallies.
The return of market interest has prompted a published author and salesman of altcoins to thoroughly analyze the relationship between Bitcoin and their friends, and the study could help explain what to expect in the coming months. come when the crypto bear market ends.
The Altcoin Bull cycle will occur first, profit taking into account in BTC to lead the Bull Bitcoin cycle
Nik Patel is the best-selling author behind An Altcoin Trader's Handbook, and one of the most prolific traders focused on the altcoin market through Twitter encryption. Having started investing in cryptocurrency in 2013, the author has nearly 7 years of experience in the market and perfectly understands the sometimes confusing relationship between Bitcoin and Altcoins.
As the crypto market begins to gain momentum, the trader has presented his detailed analysis of how he expects each bull cycle to materialize so traders can take full advantage of future market movements and better prepare for the upside.
To conclude, here is what I believe will happen from now:
ALTBTC prices will have a bullish cycle, while BTC remains relatively stable and largely linked to the range. BTC will exceed the range, which will result in a larger move towards a USD 6,000 resistance, during which the partitions will be sold.
– Nik Patel (@cointradernik) March 12, 2019
The merchant claims to have "witnessed all the possible relations between the agents and the BTC: reverse during bullish cycles; reverse during bear cycles; live during bullish cycles; and live during the bear cycles. "
Related reading | Cap Crypto Market Critical Resistance, Altcoin is it a season wedge?
Based on his studies, Patel does not expect Bitcoin to suddenly reach new heights in the short term, or even break a large overhead support that has turned resistance to $ 6,000. Instead, Patel thinks that Bitcoin will remain relatively stable, while the altcoins will continue to gather. The theory behind the theory is that "BTC can be purchased cheaply to finance alternative movements and that prices relative to BTC can be increased due to the smaller market capitalization, guaranteeing profits. more important ".
These larger profits mean more BTCs can be retained when Bitcoin starts a new bull cycle; in the end be sold in USD when BTC becomes expensive again.
This is the ideal scenario for anyone manipulating the markets in altcoin.
– Nik Patel (@cointradernik) March 12, 2019
Patel suggests that once traders in altcoins start taking profits in BTC to increase their holdings, the next bull race in Bitcoin will begin. Traders holding Bitcoin will ultimately sell the BTC at a price of USD when the value rises enough.
Take advantage, the next Altcoin cycle will be different from January 2018
Patel also warns that the next bull cycle in altcoins will be very different from January 2018, when most altcoins hit their highest prices ever.
First of all, keep in mind that I am only talking about a change in the cycle of the altoin.
Since January 2018, mass altcoins have fallen more than 90% compared to BTC and more than 95% compared to the USD, as a result of the BTC loss of about 85%. % of its value.
– Nik Patel (@cointradernik) March 12, 2019
The trader points out that altcoins have not only dropped 95% in US dollars, but also 90% compared to BTC. The large decline and lack of liquidity of small caps means that it takes less capital for prices to move in a positive way, hence the reason they traveled great distances while Bitcoin stagnated. .
Patel expects the "ALT / BTC prices" to cycle up until Bitcoin exceeds its current level. Once the range is broken, the partitions will be sold to fuel the rise of Bitcoin until it is then rejected. At this point, the altcoins and Bitcoin will decrease until the cycle starts again at the end of the year.
Related reading | Survey reveals most crypto investors see bitcoin prices in the range of $ 100,000 to $ 1 million over the long term
Patel thinks that many crypto investors will be burned during this period as they will find themselves waiting at a record price to reach their highest historical record in US dollars, rather than look at the ratio without previous BTC, as suggested by the trader.
However, unlike the January 18 uptrend, where we should have paid attention to prices in ALTUSD, because of the decline in the BTC, we must now return to prices in ALTBTC.
The next upside run of altcoin will not be like in January 2018.
– Nik Patel (@cointradernik) March 12, 2019
"Pay close attention to the price of altcoins compared to BTC, while it remains relatively cheap," said Patel, concluding his analysis with a simple but direct statement: "take profits."
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