Hello. I have a folio of BTC, ETH, NEO and some alts. I've been watching at Bitcoin since 2015 but bought only at this summer (and the last move was quite bad, I bought some BTC for $4600). I try to study, watch vids, read forum and twitters. Chris Dunn has a vid on the topic but nothing really specific. I'm interested in some ideas about what to do when prices are falling. Sell alts and hold bitcoin? Short? (and if yes, so the next question is how to learn how to short?).
HOLD , i will try to explain you in detail.First of all dont try to compare and study Altcoin and Bitcoin, if you ask me nowadays they both dont have that much amount of colinearity. dont think that they both are inversely proportion to each other, past few weeks i have observe that bitcoin is doing good but altcoin is struggling that's a bad sign for pattern traders or trader who do pair trading.
coming to next point what should you do when prices are falling. first identified why the prices are falling.I mean to say identify whether it is reversal or pullback. if it is a short term pullback in trend then you can hold your longs but you cant short there. And if it is reversal then you need to book your longs profit and also you can short here.
So how to identify whether it is a Reversal or Pullback.Simple first try to predict whether the fall is forming heavy and strong candles which indicates reversal or whether it is forming small and weak candles which indicates signs of pullback.Also add volume indicator for confirming the reversal or pullback. Pullbacks will have low volume while reversal's will have big and strong volume behind the candles.
hope it help
