Topic: Is it better to analyze against /BTC or /USDT? (Read 124 times)

I have no knowledge about this topic because I don’t trade futures, only spot.

I didn’t face any difficulty with this; on the contrary, it actually benefited me.
For example, in the first coin, Bitcoin and the market were going down, while it went up and achieved the target of the ascending triangle pattern.
The goal of analysis in /btc and /usdt is to gain a clearer understanding of the coin's behavior.

Why do you need to analyze on pairing that is not use by common trader? It’s easier to analyze in fiat/stable coin fair since you are considering one price movement alone while doing an analysis on BTC gives you 2 different currency price that moves simultaneously which is gives you difficuties to analyze.

Altcoins moves the same way with Bitcoin and sometimes the other way. You will have have an inconsistent price analysis depending on the trend compared if you will analyze a coin that fair to stable asset.

If bitcoin is falling and it fall massively, did you know how much coins are liquidated? They are in billions of dollars worth in United States dollar. Also just as it is if the market go in the down direction as people that go long get liquidated for using high leverage. No one that will trade derivatives that will not think of going short position at times but those that trade spot are the ones that only prefer bitcoin to only go against USD.

When analyzing a cryptocurrency, most people rely solely on its performance against /USDT while neglecting its analysis against /BTC. This approach is incredibly incomplete and limits the depth of your understanding. Here's why:

Example 1:
I entered a trade for this coin based on a technical reason: an ascending triangle.
The coin reached its target with a 10% profit, and I sold at the wick that touched the resistance marked in red.
Afterward, the price retraced.


As the price retraced, it formed a bullish candle while respecting the triangle's boundaries—it didn’t close below it.
However, this alone wasn’t a strong enough technical reason to re-enter the trade.
So, I analyzed the coin against /BTC to gain a clearer perspective.
I discovered that the coin also had a bullish ascending triangle pattern on its /BTC chart, which hadn’t yet reached its target.


I decided to re-enter the trade, this time on /USDT.
Question: Why trade the coin on /USDT for the second entry instead of /BTC?
Because in most cases, the movement of a coin on /USDT tends to be larger than its movement on /BTC, translating into higher profits.
You can apply this strategy, When you find a coin showing bullish signs against BTC, trade it against USDT for potentially greater gains.
(Though, of course, there are exceptions to this rule.)

Thankfully, the coin surged once again:


Example 2: XRP
Before its historic rise, XRP seemed almost lifeless against /USDT, showing no signs of bullishness. Then, BOOM!, it exploded to its historic high of $3.

However, its /BTC chart had already given a positive signal when it was at the bottom, forming a double bottom pattern.
The breakout target was far exceeded, confirming the bullish momentum.


At the top, XRP’s /BTC movement became relatively flat, showing no solid reason to enter a trade, especially as it was near a strong resistance zone. But...


On the /USDT chart, XRP told a different story.
It formed a triangle pattern, which could also be seen as a flag. This, paired with solid price action, indicated another opportunity to profit.


Final Takeaway:
When analyzing any cryptocurrency, always check both /BTC and /USDT charts.
This approach ensures you have a comprehensive view of the market and significantly improves your analysis.

💡 Stay sharp, amici miei.