How to Filter High-Quality Altcoins That Have the Potential to Outperform Bitcoin? — Basic Knowledge Dissemination
In the crypto market, to find altcoins that can outperform Bitcoin, the core has never been chasing news but deeply studying price structures and relative strength.
1. First look at Bitcoin— the stabilizing force in the crypto market.
Reviewing this year's market trends, Bitcoin's lowest point occurred on April 7. At that time, market panic was triggered by news related to tariffs. But this also indicates a key point:
Trading based on news often leads to significant losses. Because most of the time, when the news comes out, the market has already reacted. News is lagging, while price is leading.
Why do small-cap coins like Alpha seem very profitable, yet in the end, almost no one makes money?
December 21 Trading Record #57 1. Liquidity Trap Why do small-cap coins like Alpha 'seem to be profitable for everyone', yet in the end, almost no one makes money? A very obvious characteristic of the market recently is: The large market has no hope, sentiment has collapsed, and all the money has run to small-cap coins like Alpha. Coins like MYX, COAI, LIGHT, BEAT have very unified characteristics: Small market capitalization Highly concentrated chips On-paper liquidity 'looks good' Price elasticity is very high The problem lies in these four words: it seems. The liquidity of this type of coin is essentially designed. Market depth, transaction volume, and K-line amplitude can all be manipulated.