Bitcoin has fallen more than $ 11,000 since its recent FOMO high. Usually the bearish momentum in the top cryptocurrency is enough to weigh on the rest of the market, but select altcoins are holding up surprisingly well.
An altcoin expert who has swapped his way through several bear and bull cycles suggests looking for and buying alts that hold up particularly well against BTC during the current drawdown. Here are some cryptocurrencies that can fit into the bill.
Bitcoin is bleeding, but buyers are focused on accumulating select altcoins
Bitcoin and altcoins have a relationship that occurs over and over again, which is no surprise for the two types of volatile digital assets.
Bitcoin usually needs to be bullish or consolidating for altcoins to perform well. If the mood turns the leader on, the alts will be beaten much worse.
Related reading | Technical data suggests an expanded Ethereum dominance over Bitcoin
This time around, certain alts hold up against market abuse more than others, and one expert says this is the crypto asset one needs to buy to make the biggest profits in the months to come.
That expert is Nik Patel, author of the An Altcoin Trader’s Handbook.
Buy altcoins that have held up well against BTC, claims expert | Source: BTCUSD on TradingView.com
Why investors are currently drawing alts through BTC
Patel knows bitcoin and altcoin cycles and has made more than a fortune out of the repetitive, cyclical patterns of cryptocurrencies. The author has also explained in the past the boom and bust cycles of the old season, in which certain cryptocurrencies far outperform BTC.
Altcoins like Ethereum, Chainlink, and Uniswap have beaten Bitcoin in a game of their own lately, and according to Patel, these could be coins worth looking at.
These alternative digital currencies, which show strength when sentiment turns on the leading cryptocurrency by market cap, say buyers are buying the blood right now but are avoiding Bitcoin for the time being.
Why altcoins hold up better than bitcoin depends on unrealized gains. After the epic Bitcoin rally, investors still have plenty of profit to make before it’s too late. This results in the sell-off becoming more severe.
Related reading | Proper altcoin season, while bitcoin drops make traders “cautious”
The highlighted altcoins have all hit new all-time highs, but much remains to be done before prices double as with Bitcoin. On the flip side, there are some alts that are nowhere near profitable and, given the lack of interest, likely not in the near future.
Featured image from deposit photos, charts from TradingView.com