We're already in a risk on window and just confirmed bearish market structure AGAIN! Last time this happened was Feb. 2nd 2020, right before altcoins pumped into our spring rally.
Using the Bitcoin dominance chart as a guide for when to take risks on alts (risk on) and when to protect your sats (risk off) allows a trader to maximize opportunity and minimize risk when stacking sats via trading.
BTC dominance climbed steadily through the 2018-2019 bear market as altcoins washed out across the board and left holders heavily underwater. As ETHBTC emerges from its current consolidation and Bitcoin continues to range. Expect to see altcoins perform very well vs. Bitcoin.
Watching this chart for signs of bullish divergence and/or bullish market structure will give a trader an idea of when this "risk on" trend is drawing to a close and allow them to hold onto the BTC gains they made during the altcoin rally, instead of giving it all back in hopes of catching another wave.
Even when trading alts vs. BTC in this risk on window. We never take more than 5% risk on any trade and because we know that altcoins are correlated, we understand the implications of taking multiple 1-2% risk positions, in the event that BTC volatility picks up (which seems more likely with each passing week). Stacking up that risk can have catastrophic effects on a trade account, so we always proceed from a "manage risk first" perspective.
With that said. There are a ton of juicy looking altcoin charts out there and we'll be publishing some of the charts that were discussed on "Hxro Labs LIVE" this morning.
Always play from a position of strength!
Using the Bitcoin dominance chart as a guide for when to take risks on alts (risk on) and when to protect your sats (risk off) allows a trader to maximize opportunity and minimize risk when stacking sats via trading.
BTC dominance climbed steadily through the 2018-2019 bear market as altcoins washed out across the board and left holders heavily underwater. As ETHBTC emerges from its current consolidation and Bitcoin continues to range. Expect to see altcoins perform very well vs. Bitcoin.
Watching this chart for signs of bullish divergence and/or bullish market structure will give a trader an idea of when this "risk on" trend is drawing to a close and allow them to hold onto the BTC gains they made during the altcoin rally, instead of giving it all back in hopes of catching another wave.
Even when trading alts vs. BTC in this risk on window. We never take more than 5% risk on any trade and because we know that altcoins are correlated, we understand the implications of taking multiple 1-2% risk positions, in the event that BTC volatility picks up (which seems more likely with each passing week). Stacking up that risk can have catastrophic effects on a trade account, so we always proceed from a "manage risk first" perspective.
With that said. There are a ton of juicy looking altcoin charts out there and we'll be publishing some of the charts that were discussed on "Hxro Labs LIVE" this morning.
Always play from a position of strength!