What Happens To The Altcoins If Bitcoin Drops Strong?

[Majharul Saiif]

We have been bearish since mid-May 2020. Yesterday we decided to READ the weekly chart. In the analysis, we clearly mention a technically bullish Bitcoin but that would change if prices move and close below EMA10. If you look at the chart and the description/analysis you will surely agree. The 1H chart is short-term and changes every few hours. Here we are looking/reading the daily chart... We share what we see on the chart. Charts are always changing... Please keep this in mind. A chart can be bullish today, bearish tomorrow, and vice versa. The daily chart for Bitcoin (BTCUSD) is bearish. Prices trading below EMA10 is one signal that I look at. Trading below EMA50 is another bearish signal and stronger. A bearish cross is another one. Low volume another one. Lower highs, another one, etc. "Considering" the bullish scenario on a longer timeframe doesn't change our view and we never shared any trades in any of our channels asking people to long Bitcoin, only reading charts. I know this can be confusing for some but if it is... It is your job to stay out and trade only once you are 100% certain in what you are doing, once you feel 100% sure.

For more details, please visit this, https://www.tradingview.com/chart/BTCUSD/Zd7geN2t-What-Happens-To-The-Altcoins-If-Bitcoin-Drops-Strong/?amp

[oriontab]

One thing for sure, if bitcoins goes down, the altcoins take a hit also,often times it is worse for altcoins. The bitcoins dominance has been indicative of the in last couple of months,never gone below 60 per cent

[coupable]

As oriontab said, the bitcoin dominance has a great impact over other altcoins. Most of them has their value determined in bitcoin and almost traded with bitcoin.
Some of them have real value, compared to shitcoins, but if bitcoin dropped dramatically, don't expect people to trust them anymore. We saw this happened several times during the times when bitcoin price decreased intensively, alts dropped more than expected and some of them even killed by the speculation around. Fortunetly, bitcoin is still the safe heaven to invest .

[serjent05]

If Bitcoin Crash, it will somehow an effect on majority of the altcoins but I am sure that there are some altcoins that are independent of Bitcoin price since some altcoins were valued in USD thus the BTC value of that said altcoin will just adjust.  

I believe that the Altcoin market should be independent from Bitcoin market because it is a separate project and development team.  It is the same as one company from another company.

[AmoreJaz]

If Bitcoin Crash, it will somehow an effect on majority of the altcoins but I am sure that there are some altcoins that are independent of Bitcoin price since some altcoins were valued in USD thus the BTC value of that said altcoin will just adjust.  

I believe that the Altcoin market should be independent from Bitcoin market because it is a separate project and development team.  It is the same as one company from another company.

that should be the case for most alts. if the alt has very rock solid platform, they perform independently. and we already saw that in some alts, where they dont follow the btc trend. however, in most cases, some popular alts like eth, xrp, bch strongly follows the btc movement as we can see the example below-

[dunfida]

If Bitcoin Crash, it will somehow an effect on majority of the altcoins but I am sure that there are some altcoins that are independent of Bitcoin price since some altcoins were valued in USD thus the BTC value of that said altcoin will just adjust.  

I believe that the Altcoin market should be independent from Bitcoin market because it is a separate project and development team.  It is the same as one company from another company.

Only a few would really have that fiat/alt pair and the rest are tied up with btc and other top alts in the market and when such decline do happens, we do able to see that the market price go along with the trend which we had seen in the years we have been on this market.

When bitcoins price tends to dip then all of alts being dragged down too neither of the reason that people are in afraid state that market would come to zero or just simply cashing out their
alts to buy up cheaper coins or cashing out to prevent more loss.

This is why decisions to be made on these kind of times is crucial because you wouldnt know on what would happen next.

[fuer44]

actually there is no direct relationship between the two, but the most influential here is the trend of buying or selling that is almost the same because it is in the same market. for example the buying trend of bitcoin rises, it is not impossible that it will affect the altcoin trend as well and if sales go up and make the price of bitcoin fall, the trend in altcoin is also like that because people do not want to take risks when large coins die, then small coins will also be sold too.

[Rengga Jati]

                                       Source: coinmarketcap

It is an easy answer. If Bitcoin drops, then altcoins will probably follow it as they depend on the performance of Bitcoin. Just look at the picture above, It described clearly that most altcoins are following the performance of Bitcoin. FYI, it is the picture of current drops of crypto coins, the picture was taken from coinmarketcap. Except for Tether, stable coins aren't following Bitcoin performance as their prices depend on dollars.

[seleme]

Considering the positive correlation, the single bar drop in the BTC chart can be reflected in the double bar on the altcoin charts. The altcoins usually wait for the price action of BTC first and the traders decide to join the party or not. It is as simple as that, no need to overcomplicate the things.

[GroundbreakingLaw3]

Yeah, I agree with the other replies in this thread. Since most altcoins are traded against bitcoin they tend to go down when bitcoin goes down.

[acdc]

All altcoins revolve around bitcoin so if bitcoin drops, most altcoins will suffer. It has been proven many times before, that bitcoin declines and altcoins decrease, bitcoin rises and altcoins follow suit.

[xZork]

I believe that the Altcoin market should be independent from Bitcoin market because it is a separate project and development team.  It is the same as one company from another company.

Although bitcoin and altcoin are separate projects, most altcoins depend on bitcoin and it is difficult to escape.
A lot of altcoin projects want to get out of bitcoin's influence and compete with it, but so far no coins have been able to do that.

[GreatArkansas]

We already experience before that if Bitcoin drops too strong, altcoins also drop too hard.
For me, the only most pathetic here is the altcoins, since things become different now. Like if Bitcoin pumps, altcoins become neutral (no dump/ no pump) but when Bitcoin dumps, altcoins also too.
It's not already the same like before the bull run 2017 -2018.

[yhiaali3]

This is a well-known rule in trading, if bitcoin falls, it will take all other Altcoins with it, and vice versa when bitcoin rises, the rest of the Altcoins rise in the market, for me the Bitcoin decline will not be bad because it will be an opportunity to obtain more quantities of Altcoins, meaning when the bitcoin price falls, the price falls Other Altcoins are more and thus the opportunity to buy is appropriate so you only have to buy and wait for the increase again.

[MuhNofa]

in my opinion, if bitcoin experiences a very drastic price reduction, it will greatly affect all other altcoins. because what I feel is that bitcoin itself is the benchmark for cryptocurrency itself, although for now there are already several altcoins that have become one such exchange as ethereum. but I think still bitcoin has a very big impact.

[Finestream]

Based on its price history and based on my observation, when bitcoin is down, altcoins will follow, and worst would happen with altcoins.

The best example was the scenario in 2018, of after the bull run which the long correction came thereafter.
As we all see, bitcoin drop a lot from almost $20k and touches below $4k, so that's a huge dump.

Now, here's what happened to altcoins, they dumped 10x or even more and even some altcoins are almost worthless now.
We will take ETH for example, it reached an ATH of $1300+ but it dropped below $100, that's probably the same scenario that would happen, and unfortunately bitcoin hasn't been fully recovered yet from its ATH so we are seeing some struggle from altcoins market.

[zero714309]

We know that the history of altcoins movement is greatly influenced by BTC. When BTC falls of course altcoins drop also and we all know about this. Since there are trading futures, many traders who don't really have problems with bearish or bullish. But the problem is for long term investors who have to hodl their assets longer. I believe altcoins session will coming soon but at this time we don't really know where's BTC will go, even our TA is good but doesn't mean it will also same in the end with 100% accurate.

[Python Master]

History has proved that Altcoins will drop strong if Bitcoin drops strong. Because traders exchange BTC to stable coin to secure their money, altcoins traders also do the same. So all altcoins traders need to focus on Bitcoin price, although that they do not trade Bitcoin. Anyway your analysis is not related to your title.

[nicedreams]

Every altcoin follows the signal of Bitcoin so if Bitcoin in turmoil, of course, altcoins will suffer the same fate too. Though the USDT or stablecoin in that time will also become a safe channel for everyone to save their coin and that's something worry me the most.

[jossiel]

When I saw bitcoin pumped a bit to $9178, I thought that it's the sign but not yet. It plummets back around to $9040 and sways from time to time on that level. The bitcoin market has always been hard to determine but with these indicators, they do help.

Thank you for that reminder but people barely listen to advice that they see online whether it's for the good. But looking to the positive perspective, if you want to buy you can buy now or wait a little bit to see more action.