The alt runs over the last week have been fantastic and I hope everyone is doing well in their trading. It's a great confidence booster for everyone to see their favorite alts getting some attention and the value of portfolios going up. But something I think that we should be weary of is the market getting ahead of itself. Everyone is itching for another bull run, but I believe that BTC is still in a precarious position, and therefore we may not be out of the woods yet. BTC is still in a triangle pattern in the midst of a downtrend, still fighting for stability. Typically, this pattern breaks downwards. If it breaks into another downleg, there will be more panic and more selloff of BTC, and therefore selloff of alts. Of course there is a possibility that this will not happen, but it probably will. Therefore we should be prepared to sell our coins into tether or USD in this case, and rebuy back at a lower price. Shorting would also be good.
It is a great sign that people have a lot of faith in alts at the moment. This is good confirmation that the crypto bulls are still out there and really want another bull run. But BTC is still the king and we should not forget that. It is the main indicator of overall market health, and is not healthy right now. If BTC goes on another down leg, we can expect this alt run to come to an end (for now). If you stay in alts while BTC is getting panic sold, then you will REALLY be hurting and will watch your gains evaporate because the market will be panic selling both alts and BTC.
Please do not misconstrue what I am saying, and attack me for saying BTC will continue on this downtrend. I am simply a student of chart patterns and this is what I see. I am a long term bull on BTC and blockchain, but I am also a trader and I am weary of big drops and watching my gains get wiped out. If you are in alts and BTC decides to take another dive, you will be caught out and lose a lot.
In the case that BTC goes onto an upleg, I think that even more alts will go on runs, and we should be on the lookout for that as well. I believe that BTC is nearing a bottom, but it is about to get volatile again so we should all be careful to protect ourselves from losses!
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