Bitcoin has dropped more than $12000 from a recent peak amid the hype and FOMO. Usually, even a slight bearish momentum in a leading cryptocurrency market is enough to make the rest of the market crash ... but some altcoins are holding the current hit.
One seasoned altcoin expert suggests tracking and buying any alternative coins that are showing strength when paired with BTC during the current correction. What coins should you pay attention to now?
Bitcoin depreciates, but buyers focus on hoarding individual altcoins
Typically, the BTC trend needs to be bullish or consolidating for the entire altcoin market to rally. Conversely, when the leader's market sentiment turns bearish, the smaller coins crash.
But some altcoins are more resilient to market fluctuations than others, and a prominent analyst believes they should be bought to maximize profits in the coming months.
This Expert Advisor is Nick Patel, author of The Altcoin Trader's Guide.
Altcoins that are either holding steady or growing slightly relative to BTC despite the correction are the assets to buy. There are quite a few of them.
Why some altcoins are bought by investors
Patel analyzes BTC and altcoin cycles, and he's already made a fortune from putting recurring models into practice. The analyst has repeatedly explained the periods of ups and downs in the altcoin season, when some cryptocurrencies increased significantly in price relative to BTC.
Lately, altcoins like Ethereum, Chainlink and Uniswap have been looking stronger than Bitcoin, and according to Patel, these coins are worth paying closer attention to.
These alternative digital currencies are showing strength as buyers buy them while avoiding active involvement in the Bitcoin market.
As for why the altcoin trend might be more stable - it all comes down to unrealized profits. After the huge BTC rally, investors have a huge amount of profits to realize before their train has left. This reinforces the sell-off. On the other hand, some altcoins have set a new all-time high, but they have yet to double as Bitcoin did. At the same time, there are some altcoins that are not even close to profitable for their holders, and given the lack of demand, their trend is likely to remain bearish in the near future.
