The negative correlation between Bitcoin and most of the other cryptocurrencies in one chart. Bitcoin jumps higher, and what does it mean? Every time we have a bull run like in the last week, BTC will be very likely to increase its value at a higher pace than its crypto fellows.
How can this insight help us to improve our trading? Well, it could mainly affect your trading if you are trading from BTC or any other unstable cryptocurrency as base coin. Trading from BTC has become popular especially after the bearish trend, however, when it comes to trade while a bull run is taking place, since BTC normally increases more than the other cryptos, your open position can sink and trigger your stop-losses.
As we can see in the chart, before the last bull run, the difference between the pairs ETH/USD and ETH/BTC was around 8%. Nevertheless, after then bull run ETH/USD, as most of the cryptocurrencies, increased and ETH/BTC barely kept its pace, having a difference of 34% in both pairs with different base coin.
Just as an example, traditional market’s trading has been always carried out from a relatively stable coin, it can be Euro, Dollar or Yens, however, trading from an unstable coin has become very common in crypto-trading, therefore we should keep a close eye on our system when we trade from BTC.
A lot of Cryptohopper users make use of triggers to change their base currency or buy settings according to market conditions. Keep an eye on your settings and don’t let the bulls run over you!
—CRYPTOHOPPER—
How can this insight help us to improve our trading? Well, it could mainly affect your trading if you are trading from BTC or any other unstable cryptocurrency as base coin. Trading from BTC has become popular especially after the bearish trend, however, when it comes to trade while a bull run is taking place, since BTC normally increases more than the other cryptos, your open position can sink and trigger your stop-losses.
As we can see in the chart, before the last bull run, the difference between the pairs ETH/USD and ETH/BTC was around 8%. Nevertheless, after then bull run ETH/USD, as most of the cryptocurrencies, increased and ETH/BTC barely kept its pace, having a difference of 34% in both pairs with different base coin.
Just as an example, traditional market’s trading has been always carried out from a relatively stable coin, it can be Euro, Dollar or Yens, however, trading from an unstable coin has become very common in crypto-trading, therefore we should keep a close eye on our system when we trade from BTC.
A lot of Cryptohopper users make use of triggers to change their base currency or buy settings according to market conditions. Keep an eye on your settings and don’t let the bulls run over you!
—CRYPTOHOPPER—