Bitcoin and Altcoins price movement's interconnection

[anushkasachith888]

Hi I am new to the Cryptoworld and holding some altcoins, So I am still learning everyday from everyone. Since I am observing the market I saw that When Bitcoin price move up Altcoin price move down, similarly when the Bitcoin price move up altcoins price move down. So, my conclusion is, whether BTC price goes up or down Altcoins have to step back respecting BTC price movements. It means when only Bitcoins price is stable at a certain range, altcoins can move forward. This is what I learn after observing the market so far, Do you think I am right ? If I am not, let me know please, and Let me know what else I have to learn if we deal with altcoins in the crypto market.. you people's knowledge is precious for me as a newbie..
Thanks in advance.

[bill gator]

While I think your head is in the right place i think you are being misled by coincidence right now. There are patterns to be found, but Bitcoin and any given alt-coin do not have any inverse correlation in terms of their price. Occasionally their are circumstances which cause people to exchange their BTC for an alt because of network congestion, price pumps and dumps, and other factors, but this will not always be the case.

I have seen both rise simultaneously, because they are both cryptocurrencies, yet they are different in whatever ways depending upon the alt-coin. This means that for any given reason that bitcoin may go up, the alt-coin may share this reason, it may exaggerate this reason, or this reason may be nullified. This works in reverses as well, Bitcoin may refuse to develop a solution, or fix a problem that an alt-coin addresses either temporarily or permanently and this will cause Bitcoin to fall while an alt-coin rises.

The criteria and scenarios are too varied to say something as simple as "When one goes up, the other goes down", plus even if this were the case you wouldn't be able to take advantage of this information because as one goes up the other is going down; you could not get a jump on the trend/correlation if they are truly tied to one another in this way.

You should look at them independently unless you believe that cryptocurrencies as a whole will benefit or detriment from whatever event, news or mass-adoption. Bitcoin develops independently from the rest of these alt-coins, is invested, exchanged, transacted, etc. independently from all of the others, so I'd say their biggest correlation is when something is temporarily driving users from one to another, transaction fess or the other things I haven't mentioned.

I'm no expert by any means, but I have quite a few years of trading experience, if you have more questions fire away; i'll be checking gin on this thread if you need me, or feel free to shoot me a PM; we can bounce ideas and try to find new patterns together. i'll tell you why i think you're right or wrong, and I very well could be right or wrong myself.

[Fortify]

I would say that there is a very fluid relationship between bitcoin and altcoins. It breaks down further too, you have a first tier of of altcoins (Litecoin, Ethereum, Dogecoin, etc) and the much smaller altcoins, many of which turn out to be trash.  The first tier altcoins will generally be picked up by traders who missed the early days of bitcoin and want to get into new coins much cheaper than sticking $15,000 on a single bitcoin. So they will, on a much smaller scale, track alongside bitcoins rises and falls. The trash coins are basically penny stocks, pumped and dumped, or total trash.

[hatshepsut93]

Any price move in Bitcoin immediately translates to USD price of the whole altcoin market because most altcoins are traded against Bitcoin. Usually there's a pattern that when BTC is rising, altcoins drop in their BTC value to stay at roughly the same USD price. Later they will catch up a bit if Bitcoin's price won't crash after some time. When Bitcoin is going down, alts are dropping in their BTC value because people want to cash out.

So, in general alts tend to drop in their BTC value, meaning that their long-term performance is worse than performance of BTC. You can check it yourself by going to coinmarketcap, switching price to BTC and looking at historical charts. Newer altcoins tend to be less predictable because they are more volatile.

[Charisse1229]

Yeah alts will move donw like bitcoin. Nad if bitcoin will go up alt will go up also. Its just the same, i dont know why is bitcoin will go down. I want to learn about crypto, becuase i dont know a lot about bitcoin. I dont have a source if bitcoin will go down or up.

[kier010]

bitcoin and altcoins have connections because when bitcoin start to pump altcoins holder sell their altcoins to buy bitcoin and when bitcoin start to dump they sell their bitcoin to buy altcoins. they do this to earn more profit compared in holding it.

[anushkasachith888]

While I think your head is in the right place i think you are being misled by coincidence right now. There are patterns to be found, but Bitcoin and any given alt-coin do not have any inverse correlation in terms of their price. Occasionally their are circumstances which cause people to exchange their BTC for an alt because of network congestion, price pumps and dumps, and other factors, but this will not always be the case.

I have seen both rise simultaneously, because they are both cryptocurrencies, yet they are different in whatever ways depending upon the alt-coin. This means that for any given reason that bitcoin may go up, the alt-coin may share this reason, it may exaggerate this reason, or this reason may be nullified. This works in reverses as well, Bitcoin may refuse to develop a solution, or fix a problem that an alt-coin addresses either temporarily or permanently and this will cause Bitcoin to fall while an alt-coin rises.

The criteria and scenarios are too varied to say something as simple as "When one goes up, the other goes down", plus even if this were the case you wouldn't be able to take advantage of this information because as one goes up the other is going down; you could not get a jump on the trend/correlation if they are truly tied to one another in this way.

You should look at them independently unless you believe that cryptocurrencies as a whole will benefit or detriment from whatever event, news or mass-adoption. Bitcoin develops independently from the rest of these alt-coins, is invested, exchanged, transacted, etc. independently from all of the others, so I'd say their biggest correlation is when something is temporarily driving users from one to another, transaction fess or the other things I haven't mentioned.

I'm no expert by any means, but I have quite a few years of trading experience, if you have more questions fire away; i'll be checking gin on this thread if you need me, or feel free to shoot me a PM; we can bounce ideas and try to find new patterns together. i'll tell you why i think you're right or wrong, and I very well could be right or wrong myself.

Hi bro, well. in past months we saw that all altcoins bleeding while BTC price goes up at its all high at unbelievable rate. And then, in recent past days BTC price got slide way ( no trend)  Then Altcoins started to climbs up like a rocket. I observe this scenario, Thats Why I just started to think BTC and Altcoins have inverse connection. But as you pointed out there is no such a reliable connection between 2.
Sure, I will contact you via pm. It is great to have a communication with you.

[anushkasachith888]

Any price move in Bitcoin immediately translates to USD price of the whole altcoin market because most altcoins are traded against Bitcoin. Usually there's a pattern that when BTC is rising, altcoins drop in their BTC value to stay at roughly the same USD price. Later they will catch up a bit if Bitcoin's price won't crash after some time. When Bitcoin is going down, alts are dropping in their BTC value because people want to cash out.

So, in general alts tend to drop in their BTC value, meaning that their long-term performance is worse than performance of BTC. You can check it yourself by going to coinmarketcap, switching price to BTC and looking at historical charts. Newer altcoins tend to be less predictable because they are more volatile.

This explanation interesting and I read this one many times to interpret it well. I want to clarify this with you. hope you will help me. So as you say, though BTC price goes up or down Altcoins drop their BTC value and protect USD value. I think this is because they trade against BTC. I think this is because , to buy any altcoins you have to spend your BTC. If I am wrong pl tell me. Can you pl explain further more this part ?
[[When Bitcoin is going down, alts are dropping in their BTC value because people want to cash out. ]]
Why they do so when people cash out ? ( I have guesses but I would like to know from you )

[anushkasachith888]

bitcoin and altcoins have connections because when bitcoin start to pump altcoins holder sell their altcoins to buy bitcoin and when bitcoin start to dump they sell their bitcoin to buy altcoins. they do this to earn more profit compared in holding it.

But I think altcoins market mostly get green when BTC  price is stable or run in a slide way. what do you think?

[anushkasachith888]

Yeah alts will move donw like bitcoin. Nad if bitcoin will go up alt will go up also. Its just the same, i dont know why is bitcoin will go down. I want to learn about crypto, becuase i dont know a lot about bitcoin. I dont have a source if bitcoin will go down or up.

You can learn from here. follow the thread. already few experts have given their explanations

[Hydrogen]

When Bitcoin price move up Altcoin price move down, similarly when the Bitcoin price move up altcoins price move down. So, my conclusion is, whether BTC price goes up or down Altcoins have to step back respecting BTC price movements.

...

Bitcoin and alt prices moving in opposite directions is a new trend. Historically, when the value of bitcoin increases, the value of alts normally follows. This new trend we're seeing where investors pull money out of bitcoin and invest it into an alt like bitcoin cash and we see the prices moving in opposite directions, this is very new.

Coinbase says they receive about 100,000 new sign ups to trade crypto currencies, everyday. I think this new trend is a consequence of that.

What we're seeing is large, opposing direction, price movements which are brought on by the nature of speculation. The introduction of crypto futures stacked on top of that, could also add to the volatility and chaos. The long term outlook of this is key. I don't have any good ideas regarding what the long term view of the market will look like.