Strategy "Pull BTC - Dump Alt"



1. The BTC price increase phase BTC (Pull BTC)
• BTC is pushed up strongly → market confidence increases.
• Altcoins are starting to rise slightly along with BTC.
• The FOMO mentality appears, investors think altcoins are about to explode.

2. Investors start Long Altcoin
• Based on the expectation of an "Alt season."
• Margin/Futures are heavily used for altcoins.

3. BTC is being dumped heavily
• BTC dump suddenly → the market panics.
• Altcoin dump heavier due to high leverage.
• Liquidate a large number of altcoin Long orders.

4. Result
• Market makers profit by shorting altcoins or pumping the price and then selling.
• Retail investors are facing heavy losses.

Prevention strategy
• Do not Long altcoin when BTC is rising too hot.
• Monitor BTC Dominance: if it increases strongly → altcoin may not be in season yet.
• Always use stop loss and allocate capital reasonably.
• Observe Funding Rate: if it is too positive in altcoins, it may be a "trap".
BTC1.12%
ALT4.5%
FOMO1.23%
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