Topic: Do you do TA on alt coins? I do it on BTC and trade market sentiment on alts. (Read 163 times)

This is not always the case. Sometimes the upward movement of bitcoin doesn't measure up with the same percentage for other altcoins and I don't see that as something that I should always depend on because not all altcoins will obey that move especially if the coin is a new project and has not gotten that kind of popularity that is expected. But top coins like BnB or Ethereum usually follow same move made by bitcoin. But to do a TA on low level altcoins might be confusing because they are easily manipulated and that will go against analysis made on it. So it is better to follow sentiment on it.

most probably true. i have tried trading SOV/USDT. its RSI shows how much oversold this token even in the longer time frame, its rise is still suppressed by how BTC reacts in its market.

i sold all my SOV almost just a month of looking how it depriciates while BT  still move sideways jist as it is this week.

Technical Analysis doesn't always work in all markets, this is not limited to altcoins or bitcoin. That's because price is not something that moves based on history, it is mainly affected by what happens in the real world. For example we have global tensions increase which leads to gold price going up. TA can not predict that.

How much TA works in each market depends on how big that market is and how much manipulation is dominating that market. This is why when bitcoin and altcoins are compared everyone admits that it works less in altcoin market in comparison. This is because altcoins are dominated by manipulators aka pump and dumpers. So when it comes to trading altcoins you have to be good at detecting pumps to find your best entry point and also at detecting dumps to be able to exit quickly before losing your money.

As for effects of bitcoin price on altcoins, I have to say it is a significant effect but not a simple one. Almost everyone first finds out about bitcoin and then goes into altcoin market. They also want to increase their bitcoin wealth not stack altcoins that continue losing value over time. This means whenever bitcoin price makes any move (rise or drop) the traders liquidate their altcoins to move their capital to the bitcoin market and make a profit from that move. This means altcoins get dumped any time bitcoin moves in any direction. This also means the golden time for altcoin pumps is when bitcoin is stable and its market is boring.
Of course there are exceptions. For example an altcoin that is being pumped is not significantly affected by what I explained above because everything is already on the move and it can't stop that easily so the process of "pump and dump" has to finish first before it is affected by that bitcoin move.

Yes, whenever the price of Bitcoin is increasing in the market, you will be seeing other altcoins price increasing for traders to get ready for trading, because that is the right time to trade to achieve your plan from the market. If you want to spend much time on cryptocurrencies, let it be on Bitcoin, because the income Bitcoin will give to you during the bullish season, it will be difficult for you to get half of the income in altcoins during the bullish market. There are many traders who invested their capital on Bitcoin and altcoin but the funds on Bitcoin is more higher than altcoin, because it is very difficult for such traders not to achieve a good income that will satisfy he or she in the market.

Yep mate, that's true !
But anyway Bitcoin price movements don't affect Altcoin every time. I mean that Khabi Khabar gives an indication to raise the price of Bitcoin despite the fact that the fact that some Altcoins do not follow Bitcoin and as a result you may lose. So in fact technical analysis becomes necessary even if it is an altcoin. Technical analysis clears you that you will be safe by taking up trade in the current data, i.e., in this zone. Technical analysis tells you to research of previous data, it can sometimes be wrong or right. Similarly, not only one aspect, but also fundamental analysis is also necessary and if you tell the truth, in Altcoin, Fundamental works better. Because Altcoin follows the event. 
 
It means to say that technical analysis is important even if it is an altcoin, only by doing a technical analysis of Bitcoin, it is not appropriate to make the final understanding of Bitcoin for Altcoin. So according to me, TA is an important factor whether it is Bitcoin or Altcoin.

Technical analysis of Bitcoin doesn't even come of with 100% either which makes it TA is highly unreliable when it comes to short-term market movements, I understand that your point of we should only focus on analysis of Bitcoin instead of wasting time on altcoin but you also need to understand the fact that not everytime the movement of every altcoin is proportional to Bitcoin and even it often end up inversely proportional that makes it highly inaccurate too when you are talking about a specific coin.

Really? I think this means that the OP have only done something wrong and that is why he believes that TA in alts are not working and I'm with your side with that because if we think about it, there are crypto traders here that are always doing a TA and trading is not always limited in Bitcoin but there are plenty of altcoins and tokens to choose from, though maybe they can also include BTC on their analysis.

I think luck is also involved here, so even if you don't try hard and do an analysis, the market can still favour at you, and the other is if you do your best in TA, sh8t still happens but it does not mean that you won't do it anymore because most of the times it is still beneficial.

Well, it's obvious that even though bitcoin has a great impact or greatly affects other currencies or altcoins, the movement of certain altcoins will still depend on how people invest in the currency or altcoins, meaning altcoins are volatile because there are transactions happening in that currency every minute or second, so don't solely rely on bitcoin movement because some altcoins might become opposite. That's why TA, or technical analysis, is important, and honing that knowledge and skill will greatly help those traders in order to earn through bitcoin and other altcoins. And I dare you, OP, if that is your statement, then why don't you try trading just by looking at the movement of bitcoin and trading into specific altcoins? Let's see if you will efficiently earn without TA or any analysis. That's why TA and indicators are there in order to help traders earn and maximise their potential profit.

To be honest, FA and TA are most of the time going to end up in a 50-50 debate. The only use of analysis is to get an idea about the possible market sentiment and the possible movement that too in the short term and not the long term. The long term is always upwards.

So you do TA for alts, it is going to go haywire and you can see it yourself. But you might get a better outcome if you do the TA with bitcoin only and focus more on that. Altcoins will follow bitcoin, because they have no value of their own - literally speaking.

Still it ends up being a tough choice to make in the short term, which is why I advice newbies to not go for day trading but only stick to long term.

Yes, it's true that when the price of Bitcoin rises, almost the majority of the top altcoins also follow the rise of Bitcoin, but that doesn't end there, because it's still different when you perform technical analysis or fundamental analysis. 

Particularly if you are doing trading activity, where you really have to use to consider so that we can determine if the rise and fall of the price of the coin we hold will go, and it also depends on the timeframe that we will use. But the market is still unpredictable.

Most time it plays out well but sometimes trade can go south if you ignore analysis on particular alt you wanna trade. So my advise is analyze both to be a bit safe

Bitcoin movement doesn't affect every altcoins every time therefore analyzing altcoins is important. How can be a trader when you don't do your technical analysis then how are you trading or you're just entering the market and hoping for the best thing to happen and move the market in your direction. Some altcoins move separately from how Bitcoin is moving, other times altcoins move with a big pump in price but Bitcoin is still trading sideways.

Technical analysis tells you how a coins is going to movement, if all things stays the same it'll move in that same direction but if other factors comes into effect the movement will be different. You can tell if an altcoin is about to pump or dump from technically analysing the coin but the results aren't always guaranteed since the market sentiment still has an important role it plays on a coin pumping or dumping.

You’re not wrong about your point, that’s how the crypto market entirely works. The best way I think you can get it right and more accurately is to first analyse bitcoin and know the direction that the trend is going to before coming down to do the technical analysis on those altcoins, that will give you a better direction of when the market will go while trading. This is just like analysing market on an higher time frame and then come down to the lower time frame to place your trade in the direction of the higher time frame. They can be very controversial and confusing sometimes without going the direction of your analysis, so more things needs to be put into consideration before placing a trade.

It's been said a long time ago. 

While learning how to TA is good but the market isn't just too reliant on technical analysis. Look at your surroundings because you might miss a lot of things and that's another analysis comes in which is the fundamentals. Many investors and traders are forgetting about it. But whichever kind of analysis works for you, you should stick with that if you're very profitable with it. Each of us have got their own strategies and way of analyzing the market.

You need TA for all coins either it's Bitcoin or altcoins in general. Altcoins are mimicking Bitcoin movements but there is what is called dominance. If you notice market movement, there used to be a time Bitcoin will be opening green candles daily and some altcoins will follow but not many of them do that, the once that move most are supported by the actions of fundamental news, that trend will continue until dominance of Bitcoin reduces and then that of altcoins increases, this is when you will have altcoin season that a lot of coins moves rashly, that's the moment of no TA but strictly fundamentals.

However, there are some instances where TA is important, after all the TA has finished their rallies, they will come back to make a retracement, you will need TA this time to know the next move, that's when the support of and resistance of the previous charts becomes important because you can't make new supports if the previous ones doesn't actually exist, you can't know much about a chart of a coin unless you know the previous activity of the coins, this is why you need to trade altcoins.

I do not think OP is talking about new altcoins because they can be good or deadly. New listed coins can give huge ROI but nearly all of them are Ponzi schemes while investors are losing. That is why using technical analysis for them can not give you a good result. Before trading, you should study and analyze the coin that you want to use to trade before you start trading with it.

There are different types of trading. Some trading do not require fundamental analysis.

New altcoins will not have any historic data to look back on, so TA may not work accurately, but that does not mean that you should ignore it completely and use your TA from studying BTC movement to predict the movement of the altcoin.

If you suggest focusing on only BTC price movement to make predictions for the altcoin, it is almost the same as saying someone should focus on only technical analysis and not pay any attention to fundamental analysis, but in doing so, accuracy of analysis is reduced.

Doing TA with altcoins is not good especially if they are very new altcoins or with low trading volume. They can be easily manipulated by insider trading activities too that you will not see with Bitcoin because it is old enough, no big free float, and with high trading volume, it's hard to do insider trading with Bitcoin.

It's not true that when Bitcoin is up, all other coins will move up. Price movements of altcoins don't always follow Bitcoin movement because the market is zero sum and capital must be in one asset like Bitcoin before it moves to other coins. Before people taking profit in Bitcoin and move their capital to altcoins, altcoins will not move up.

If capital in Bitcoin stays the same, not move, you will need new capital flow from outsiders to move altcoins up.

You are not wrong at all, other coins are following bitcoin price prediction but you still have to analyze the altcoins. This is how I do it, I first check the price of bitcoin and followed by checking the price of the altcoins. This helps me to make good decisions for trading. But trading altcoins generally is very risky.

It is very risky because sometimes bitcoin price movement can be different from altcoins sometimes. As bitcoin price will be increasing, there are sometimes that the altcoins price that you take can decrease. Also as bitcoin price is decreasing, you can see the price of altcoin that you trade to be increasing. If you are a day trader or a scalper, you will notice this.

Altcoins are more volatile and your trades can be frustrating you at times. Good not to use leverage with most altcoins because they are very risky.

I have recently observed no matter how good your TA is, it doesn't always work on alt cos most alt price direction is impacted by BTC price.

When BTC is up all other coin move up. So why spending time on doing technical analysis on alts when doing it on BTC gives you a potential clue of most assets price direction?