Davide
@0xdavide
📈📉 When you look at an altcoin chart, what currency do you compare it to?It might seem like a trivial question but it is not at all. There are two ways to look at a crypto chart: 1) Comparing it to the dollar (for example ETH/USDT or SOL/USDT) 2) Comparing it to BTC (for example ETH/BTC) There are clear differences and now I will give an example! I will take ETH as an example, remember that the price of ETH in dollars is always the same, yet you will notice the differences! In the image below you can see two charts (same time frame): 1) ETH/USDT (TetherUS) 2) ETH/BTC Do they look the same to you?
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Davide
@0xdavide
They seem like different currencies, yet the time frame is the same! 1️⃣ In the first chart (ETH/USDT) it does not seem like a bad trend (ETH has appreciated against the dollar 📈). 2️⃣The second chart (ETH/BTC) is terrifying instead (ETH has constantly lost value against BTC 📉). 🟩In Bull Market where altcoins are highly correlated to BTC it was essential to look at the charts in relation to BTC. If you look at the charts in relation to USDT (or USDC), since altcoins go up (and down) a lot, they all seem like the same charts. However, if you relate them to BTC you notice the differences! 🟥 This is also true in bear markets, where it is obviously better to short altcoins. ✅If an altcoin chart is bullish in relation to BTC, you are doing well! ❌If the chart is bearish...you are perhaps earning compared to the dollar but you are earning less compared to holding/trading BTC! If an altcoin has a bearish chart in relation to BTC, it is not worth taking the risk of trading/holding it!
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