BTC Decrease, Altcoin Rise? Decoding the Interesting Phenomenon Between BTC and Altcoin

In the crypto market, especially when the market is sideways, there is a quite interesting phenomenon that many investors notice: Bitcoin (BTC) is trending down, but many Altcoins are holding steady or even increasing slightly. However, to understand more clearly, we need to analyze each factor thoroughly.

1. BTC remains the "main driver" of the crypto market. First of all, it should be emphasized that the general direction of Altcoin depends on BTC. When BTC falls, most Altcoins will also fall, with rare cases of Altcoins sustainably rising against the trend. The reason is that BTC still holds a leading position, determining the flow of money, investor sentiment, and the liquidity strength of the entire market.
2. Altcoin is in a state of extreme "compression". A notable technical feature observed is that Altcoin is currently undergoing a strong compression phase on the medium-term chart: The moving averages (MA/EMA) show that Altcoin fluctuates within a very narrow range. When the market enters an upward trend, Altcoin may explode more strongly than BTC, as the potential buying power has already been accumulated.
3. BTC faces the EMA144 level The daily chart of BTC shows that the EMA144 has supported the price once, but based on experience, the second support is usually not durable: If the EMA144 is broken, BTC often experiences a sharp fall, leading to significant volatility across the crypto market. In this scenario, even though Altcoins also decrease, the drop of BTC may be deeper, creating profit opportunities if the right Altcoins are chosen.
4. Suggested investment strategy Based on the observations above, investors can consider: When the market falls: Prioritize choosing BTC to short because the direction of BTC is clearer and more stable. When the market rises: Prioritize choosing Altcoin to long, because if an upward trend appears, Altcoin often increases faster than BTC due to the previous compression state. Conclusion The phenomenon of BTC falling while Altcoins experience a slight increase is not a "violation of the rules," but rather a result of the relationship between the leading force of BTC and the compression state of Altcoins. Understanding this logic will help investors choose the right strategy, seizing opportunities whether the market is moving sideways or entering a new trend.