Not too long ago, I made a post in which I stated that every single altcoin that is traded in this market is moving in accordance with both its own price cycle, and also the price cycle of the grandfather of crypto: Bitcoin... Ill explain how all of this is relevant.
If you look into many of the top tier coins in the altcoin space... You can very simply pin-point all of the major altcoin booms that have taken place and link them directly to a major decline in the price of BTC.
For example
START had its first big volume rally back in October 2014 when bitcoin was plummeting in value
CANNs first mega pump happened back in October 2014 when bitcoin was plummeting in value
SDC had its first high volume rally back in September 2014 when bitcoin was plummeting in value
BTCD had its first mega volume rally back in August 2014 when bitcoin was plummeting in value
VRC had its big volume pump back in June 2014 when bitcoin was plummeting in value
There are several more coins that can be tossed into this list
Simply, when bitcoin dips the altcoins rip!
All of the rallies mentioned above attracted abnormal amounts of volume... In fact, due to the price of BTC at the time, both VRC and BTCD attracted millions in USD when they were rallying.
The implication is, except for the coins that move in tandem with bitcoin (DRK (DASH), DOGE, LTC etc) when bitcoin is booming and rocketing into sky high price ranges , no one is touching altcoins.
It's almost like this is three dimensional trading. You have to buy btc to trade altcoins, and then you have to sell altcoins for bitcoin when you want to cash out.
This is my new indicator for btc. The next time volume dries up in the altcoins, I'm going to get myself a batch of bitcoins to play with
It was always clear that this connection exists but now it's been brought to everyones attention