I personally see BTC consolidation happening at a $900-$1000 range.
I am not selling BTC fearing a massive price collapse. Diversifying into best of breed altcoins for more leverage is okay, but this leverage can bite you in both directions.
I was referring to a temporary BTC sell to get hold of altcoins which will probably pump up in price, which makes it a good strategy to gain more BTC on the short-term since the altcoin to BTC ratio will be higher.
Even if Altcoin prices do not get impacted much (Which I highly doubt), you will still be selling your BTC at $1250 and buying back in at the $1100 point you noted which makes not holding BTC the best option. Just my 2 cents.