Everyone likes in ALT seasons, seeing the Alts multiply x2, x3, x4 those multipliers might be relatively easy to accomplish in some of them, just by studying the trends and price structures related to them. However the real question is, does it make sense to hold the Alts, over a long period, or even during a full bear market?.
For the purpose of this littleexercise, I will start from the assumption that the king of the Alts' is #ETH, at least in terms of market cap and for the time being, in terms of reduced volatility, meaning a theoretical lower risk than others. Yes, I know that many of you will not agree on that, but the fact is that data comparing graphs, proves it.
The test is very simple to do, just compare the selected Alt against ETH, the truth is that few ALTS pass the test and practically none, overperform ETH consistently for long periods, they only do it in very specific periods and short periods that coincide with their maximum FOMO phases, just before the painful corrections.
As an example, you can see the #VET against #ETH, I have chosen #VET because it is a great and well established project, with very strong fundamentals and it is managed for a serious and professional team.
Do you think it makes sense, viewing the chart, which is not particularly negative by far, in comparison with the vast majority of ALT's, to hold #VET during a full bear market? From my point of view, it is not, at least not based on data, other than what your heart tells to you. Doing the exercise you will be able to appreciated how ALT´s are bleeding against #ETH consistently.
I mean, it seems to make sense, to use ALT's as a way to get #BTC more efficiently at specific times or as a strategy to multiply and withdraw USD, but not especially as a long term investment strategy.
By the way, look the RSI how it is anticipating the periods in a relatively easy way,
For the purpose of this littleexercise, I will start from the assumption that the king of the Alts' is #ETH, at least in terms of market cap and for the time being, in terms of reduced volatility, meaning a theoretical lower risk than others. Yes, I know that many of you will not agree on that, but the fact is that data comparing graphs, proves it.
The test is very simple to do, just compare the selected Alt against ETH, the truth is that few ALTS pass the test and practically none, overperform ETH consistently for long periods, they only do it in very specific periods and short periods that coincide with their maximum FOMO phases, just before the painful corrections.
As an example, you can see the #VET against #ETH, I have chosen #VET because it is a great and well established project, with very strong fundamentals and it is managed for a serious and professional team.
Do you think it makes sense, viewing the chart, which is not particularly negative by far, in comparison with the vast majority of ALT's, to hold #VET during a full bear market? From my point of view, it is not, at least not based on data, other than what your heart tells to you. Doing the exercise you will be able to appreciated how ALT´s are bleeding against #ETH consistently.
I mean, it seems to make sense, to use ALT's as a way to get #BTC more efficiently at specific times or as a strategy to multiply and withdraw USD, but not especially as a long term investment strategy.
By the way, look the RSI how it is anticipating the periods in a relatively easy way,