ياسـر
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Good morning 🌞
When is the rise of Bitcoin positive and when is it negative for altcoins?
— Negative —
1— If it's a violent and sudden rise "explosive"
that leads to liquidity being pulled from the entire market towards Bitcoin.
Altcoins collapse against Bitcoin due to liquidity scarcity.
When Bitcoin dominance rises strongly,
a rise above 55-60% usually "chokes" altcoins.
Liquidity piles up in Bitcoin and doesn't go to the rest of the projects.
If the rise occurs in an environment full of fear or doubt,
such as during a banking crisis or bank collapses, people buy Bitcoin as a refuge.
But they don’t enter the rest of the market, which means that the other currencies remain stagnant.
— Positive —
2— When the rise is gradual and stable:
it means that the market absorbs the rise without panic or FOMO "Fomo"
giving an opportunity for funds to later distribute to other currencies.
If it coincides with stability in dominance or its decline:
a drop in dominance despite the rise of Bitcoin means that funds are also heading towards altcoins.
A clear indicator that the "altcoin season" may begin.
If it exceeds a historical peak and stabilizes above it,
for example, exceeding the peak of 112,000 and stabilizing above it attracts massive liquidity.
Then liquidity starts to later distribute to Ethereum and then the rest of the market,
and the altcoin season begins...
🚨🟩 Now we are in the positive impact
$BTC
{spot}(BTCUSDT)
$ETH
{spot}(ETHUSDT)
$XRP
{spot}(XRPUSDT)
When is the rise of Bitcoin positive and when is it negative for altcoins?
— Negative —
1— If it's a violent and sudden rise "explosive"
that leads to liquidity being pulled from the entire market towards Bitcoin.
Altcoins collapse against Bitcoin due to liquidity scarcity.
When Bitcoin dominance rises strongly,
a rise above 55-60% usually "chokes" altcoins.
Liquidity piles up in Bitcoin and doesn't go to the rest of the projects.
If the rise occurs in an environment full of fear or doubt,
such as during a banking crisis or bank collapses, people buy Bitcoin as a refuge.
But they don’t enter the rest of the market, which means that the other currencies remain stagnant.
— Positive —
2— When the rise is gradual and stable:
it means that the market absorbs the rise without panic or FOMO "Fomo"
giving an opportunity for funds to later distribute to other currencies.
If it coincides with stability in dominance or its decline:
a drop in dominance despite the rise of Bitcoin means that funds are also heading towards altcoins.
A clear indicator that the "altcoin season" may begin.
If it exceeds a historical peak and stabilizes above it,
for example, exceeding the peak of 112,000 and stabilizing above it attracts massive liquidity.
Then liquidity starts to later distribute to Ethereum and then the rest of the market,
and the altcoin season begins...
🚨🟩 Now we are in the positive impact
$BTC
{spot}(BTCUSDT)
$ETH
{spot}(ETHUSDT)
$XRP
{spot}(XRPUSDT)
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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