Altcoins normally follow Bitcoin, but the most savvy crypto traders can convert BTC dips into buying opportunities.
We’ve previously stated that the relationship between Bitcoin’s price and the market capitalization of hundreds of altcoins is illogical.
Bitcoin have very little in common with Ethereum, Shiba Inu, or FTX’s native exchange token, whether you consider Bitcoin is digital gold, a payment mechanism, or both.
Big fluctuations in the price of Bitcoin define crypto markets, whether we like it or not.
But as soon as the market turns red, as it did last week, many traders tend to succumb to three old enemies: Fear, uncertainty, and doubt (FUD).
Which is why we say: FUD that. Experienced crypto traders know that periods of correction can also present profit opportunities. And Cointelegraph Markets Pro’s own VORTECS™ Score found six of the ten best-performing altcoins last week, even as the market took a dive.
Six out of ten of the week’s top-performing assets exhibited patterns of trading and social behaviour that closely resembled historically bullish combinations before they rallied.
- The Sandbox (SAND)
- Crypto.com coin (CRO)
- Voyager (VGX)
- Koinos Network (KOIN)
- TomoChain (TOMO)
- AirSwap (AST)
Six out of ten is significant, given that the overall number of tokens that yielded any gains has been very modest.
What does it say about the nature of the crypto market? When things are bullish, altcoins can rally for an infinite number of reasons, oftentimes simply due to a favourable macro context and exuberance taking over the market.
But when much of the market is going south, analysis suggests that tokens supported by robust trading activity and high social sentiment are most likely to buck the trend.
These are also the times when traders need reliable data analytics to inform their strategies the most. When the floor is lava, it helps to have an extra pair of algorithmic eyes sifting through millions of data points to identify potential safe-havens.