What Does It Mean When Bitcoin Is Pumping But Alts Are Dumping? Should You Be Worried?

What's up everybody, welcome back to The Art of Crypto, the birthplace of absolutely legendary gains. In this video, we are going to talk about why even though Bitcoin is pumping so hard right now, but altcoins are taking an absolute beating. And if you want to figure out why, like, hey, if Bitcoin's pumping, aren't alts supposed to pump as well? If you want to figure out exactly why alts are not pumping and when they will start pumping, then you are going to want to watch till the end of this video. But right before I dive into that, make sure you follow me on Twitter at _TheArtOfCrypto before we do so. This is where I'm sharing the latest market updates, stuff that I wouldn't otherwise post on YouTube due to time constraints, right? So all the latest market updates as well as any trade setups that I might be looking at is going to be on Twitter. So make sure you follow me on Twitter. So at the moment, BTC is getting rejected just a tiny bit off $58K, which is a target that I predicted if you just go watch my previous BTC video. And at the moment, I do not think that BTC is done with its move. I do believe the ultimate target is going to be at about $59,500 and just a slightly bit below it. Now, the reason why I say that is because if you just go on to the weekly chart, you can see that there is like equal highs over here on the weekly chart. And this is incredibly juicy because there is going to be a lot of liquidity sitting right above that level. And by liquidity, all I mean is like, imagine if you were going short on Bitcoin, where would you realistically set your stop loss? I would assume somewhere above here. And the institutions, the hedge funds, the algorithms, they all know this, and everyone's going to set their stop loss at this level. And you know, they know this. And so what's likely going to happen is— I always like to say that the markets always move from an area of high liquidity to the next area of high liquidity. So back during May, during this dump right here, you can see that there was a lot of liquidity below these levels, right? Below these levels, below these levels. Right? And then we went all the way down to clear out all the liquidity before finally going back up to take out the liquidity here, take out the liquidity— well, the next zone of liquidity would be above here. So makes sense that the price would be drawn to this level right here. So I do believe that the ultimate target for Bitcoin to reach for before it starts dumping, right, before it starts reversing, is going to be at about $59,500 to about $60K, right? $62,000-ish, right? It's going to wick just a tiny bit above this level, Clearing out all the stop losses and then reversing. So if you are having any Bitcoin at all, I would personally take some profit, right? I'm not telling you to close your entire position, but I would take some profit at about 59,800. That is just my personal, you know, what I would do. And if you were looking for a short, then you might want to place a short at about 59,800 to about 6,500-ish, right? And that is going— I know this video isn't supposed to talk about Bitcoin, but Bitcoin is sort of the mama bear, and we have to understand what Bitcoin is doing before we can dive into any other things. And at the moment, I hope you guys understand what Bitcoin is doing. So far, I have been right. I, in fact, I have been right about 40K being very close to the bottom, to like being a very good swing bottom to build a swing position at. And at the moment, I do think that I'm going to be right again. And just to add on another layer of analysis, I do think that we might reach for this level, right? We will reach this level somewhere between the range of 14th of October to 17th of October. In fact, The 16th of October to the 17th of October is going to be a weekend, and that is a chance for the institutions to build up a range and then finally wicking above it and then diving it down. So to those of you who do not understand what I'm talking about, let's just say that I'm predicting that is going to happen. Yeah, let's just explain it just a little bit for you, right? If you notice in the previous weekend how like the weekend over here, notice how Bitcoin really did nothing at all, right? It was just building a range. And expect something like this to happen on the 16th to 17th of October, right? That is a weekend. If we haven't dumped before this date, then expect that weekend to look something like this. And then when it comes Monday time, you will expect the price to wick just a tiny bit above you know the range top, right? Clear out all the liquidity, right? Again, when you are getting this thing right here, like retail is going to be looking at this and be going like, "Hey, that's a bull flag," right? You're supposed to buy the breakout, and that is how you know retail gets trapped. Now I know this was a bull flag breakout right here, and that's because the trend was still bullish. But somewhere at about the 16th to 17th of October, right? If you get this kind of a pattern, I really want you to place a short just above the range top, right? And you can just place a tight stop loss, maybe 1 to 2% at most, 3%, and you should be really safe, right? It's going to be a good calculated bet. If it works out, then you're going to catch the exact top. If it doesn't work out, then you get stopped out with a small loss. It is a calculated risk. But otherwise, the reason why I'm so confident that that is going to happen is if you just go on to the total chart, right, total being like the total market cap of crypto, You can see that historically speaking, historically speaking, the first two weeks of every month always you know you're always pumped quite a bit in the first two weeks and in the second two weeks you sort of you sort of you know calm down right second two weeks you calm down second two weeks you sort of calm down calm down right something like that in the rare occurrence that you know on the last two weeks of the month you continue pumping but that is like the exception not the rule and because of that we should expect there to be you know some kind of a reversal in just You know, on the 14th, right? On the 14th day of the month. So that's going to be the 14th of October to about the 17th of October, right? Just a prediction. Now I know that some people might be thinking, hey, um, if there's one thing that, you know, I could predict the price very well, I could predict that, hey, um, you're gonna find a bottom here, you're gonna find a top here. But if there's one thing that I'm not confident in predicting, and that is going to be date, right? I cannot time the market, and I don't think that many people are able to time the market. If they can, that is absolutely amazing. Kudos to them. But that's not something I can do. So just take this with a grain of salt. While I do think that you know it might happen somewhere during that time period, but just don't take that as gospel. All right? It's just a prediction, and I hope that that makes you understand what is the next move for Bitcoin. Now I know this is not supposed to be a Bitcoin video, so let's finally dive into why. Like even though Bitcoin is pumping, alts are dumping, and for that I'm going to need to bring up a graph from my private Discord group, and this is going to be. Understanding the Bitcoin dominance cycle. Now, if for those of you who do not know, who absolutely do not know what Bitcoin dominance is, it basically just signifies what percentage of the total, the total market cap of crypto that Bitcoin is holding, right, that Bitcoin is taking up. So for example, during this period right here where it was at its peak, right, Bitcoin by itself was taking up 73.5% of the entire crypto market cap, which means if the total, right? Let me just go back to total right now. Like, imagine if the total market cap was, um, like $1 trillion, right? $1 trillion. If Bitcoin, right, BTCD, was 73%, that means that Bitcoin by itself was holding up a $730 billion market cap. And that's what, you know, that's what BTCD means. And the importance of paying attention to Bitcoin dominance is the fact that it'll tell you when, you know, Bitcoin seasons are happening and when you should be, you know, potentially cashing out of your altcoins and getting some Bitcoin. Because when BTC dominance is going down, that means that alts are taking up, you know, alts are outperforming Bitcoin. And during times like this, when Bitcoin dominance is so high up here, that's the time where you start, you know, buying altcoins. Because once it starts dropping, I don't know if you notice, but the period from January to about May, right, which is right here, I don't know if you noticed, but a lot of altcoins absolutely took off. And that's because You know, Bitcoin dominance got rejected and it started going into the downtrend. And at the moment, at the moment, I don't mean to ring any like alarm bells, but Bitcoin dominance is looking absolutely bullish. And in fact, in the event that Bitcoin dominance breaks this level right here at about 49, right, 49%, if Bitcoin dominance were to be able to break this level, then it's going to be incredibly dangerous because Bitcoin dominance might go all the way back up to 57. And that is not going to be a good sign. It is probably going to take a few weeks to a couple months to get there. And if it does, then during this entire period right here, altcoins are not going to perform as well. And because of that, you are definitely going to want some Bitcoin exposure. However, this is not a cause for concern because usually, I don't know if you realize, but like multi-month bull seasons, right? Strong, like really strong bull seasons. And I'm talking about like altcoins going 50x, 75x, 100x, those kinds of things. Happen usually after Bitcoin has finished pumping, right? In order for altcoins to be bullish, you need Bitcoin to make the first move, right? That is something that is generally, you know, accepted in the crypto community, that you do need Bitcoin to make a leading move. And at the moment, it does seem like Bitcoin is indeed making the leading move. In the event that Bitcoin does break above, you know, $60K, maybe even $65K, and continues to go for all-time highs, that is going to be a massive signal that, you know, potentially we could be going into a Bitcoin season. Now, just to illustrate it a little bit better for you, you could go on to blockchaincenter.net altcoin season index, right? You can come here and you can check out if, you know, whether or not we are in an altcoin season or are we in a Bitcoin season. And during Bitcoin seasons, it basically just means that Bitcoin is outperforming most altcoins, right? At least the top altcoins. And during altcoin seasons, it means that most altcoins are outperforming Bitcoin in terms of gains. And you can see that during this period right here, when BTCD— right, when BTCD— let me just go back to Bitcoin dominance. When Bitcoin dominance was like super, super low right here, during this period right here— I know this is on the weekly chart, it does not look like much— but during this period right here, when Bitcoin dominance was really, really low, you can just take a look at altcoins, like the Altcoin Season Index, right? It was really high, and that was a very good sign for you to start taking some profit off your alts, right? So I I want you to pay attention to this like index. If it gets back to BTC season, right, I want you to start accumulating altcoins, right? We might stay in BTC season for, you know, a couple of weeks, maybe a few weeks. But you know, once it does dip all the way back down here, that is a buy signal for altcoins because chances are you're going to be catching pretty close to the bottom, right? At the moment, we are in no man's land, right? Dead center in the middle. So This is not going to be a very good indicator at the moment, which is why we have to pay attention to the Bitcoin dominance chart and figure out exactly where it's going to go next. At the moment, Bitcoin dominance does seem incredibly bullish. So I want you to mark down these two levels right here at $47.7 as well as sorry not dollars. This is not dollars right percent right 47.7% and 49%. Now you are absolutely going to want to look for a rejection of Bitcoin dominance at these two levels right. Like I want you basically what I'm saying is I want you to time your altcoin entries, right? If you were going to get any altcoins, expect them not to do well until Bitcoin dominance hits about 47.7 or about 49, right? And then once you get rejected here, then altcoins are going to start absolutely taking off. So if you do get to these two levels right here, I want you to start buying like your altcoins, right? Building your altcoin position in the event that you know Bitcoin dominance does. Go over this line, then hey, you just exit your altcoin positions for a small loss. You can absolutely use Bitcoin dominance as sort of a trading indicator. But the key level, right, I'm not saying that it's going to get rejected here, I'm just saying that look for a rejection there, right? Hopefully it does get rejected there so that altcoins can start moving. But in the event that it does not get rejected, then you are absolutely going to want to watch 49, right? 49 to 50 is going to be like the key, like really, like you really do not want Bitcoin dominance to break above 50 If it does, I do believe that there is a chance that it might go back to you know fifty, maybe sixty. Sorry, right here sixty and about fifty-seven, right? And if it does start going there, it's going to take a while, right? Altcoins are not going to do well for basically the remainder of the season. Sorry, remainder of the year. And it's not something that we want to see as crypto people because we're impatient. We want the gains and we want the gains fast and now. But however, if you remember what I was talking about just now is that you know strong altcoin bull seasons cannot they cannot take place unless. Bitcoin does a pump, right? You want Bitcoin to lead. This is incredibly bullish, right? At the moment, it does seem like Bitcoin is on track to go for a new all-time high. Now don't quote me on this. Of course, there's going to be a couple of rejections before we start taking off again. And again, if you want to figure out exactly where the levels that I'm going to be paying attention on Bitcoin for, make sure you watch my previous Bitcoin videos. I discuss exactly which zone that I'm going to want to buy the most Bitcoin at. And just for your information, I did call 40K like way back in advance, right, over like a month and a half ago. And once it did get there, you can see that it was indeed the bottom. And currently I have already called the new bottom, and so make sure you watch that video if you haven't yet. But just to go back to the private Discord group, you can see that, you know, it's, it's just important to understand the money flow in crypto, right? For example, I'm just going to bring up this one, right? See, Bitcoin always makes the first move, and then the money, right, because When Bitcoin is moving, everyone's going to be FOMOing into Bitcoin. Now, once Bitcoin finishes its move, that's when altcoins can really start moving. As you can see by Bitcoin dominance, right, right now Bitcoin's pumping, Bitcoin dominance is going up as well. It means that a lot of people are FOMOing into Bitcoin right now, and because of that, there is not enough money flow going into altcoins. And that's why you are seeing altcoins absolutely take a beating. So during times like this, you really— like when Bitcoin is pumping or, you know, dumping, you really want to you know, start building some large caps, right? So that's going to be stuff like Ethereum, that's going to be stuff like Polkadot, Solana, could be AVAX, right? Those are all large caps. You are definitely going to want to build some positions on those. And then once large caps finish pumping, then money is going to flow into mid caps and then into low caps, right? And then, you know, the cycle continues. So you have to understand the money flow in crypto. And, you know, whenever you are in doubt, I really just want you to pay attention to the Bitcoin pairings of most altcoins, right? For example, Ethereum right now absolutely is not right doing well, and I guarantee you a lot of altcoins are you know showing this kind of a chart as well right against Bitcoin. You can see that even though Ethereum right against USD has been pumping right similar to Bitcoin, it has been pumping, but Ethereum against BTC is not doing you know it's not doing too hot, and that is exactly that's absolutely normal, and this will give you hope that hey when Bitcoin is pumping you really want to build those altcoin positions because once Bitcoin consolidates the BTC pairing of these altcoins. Are going to start taking off. And, you know, during that time, you are going to wish you built some altcoin positions when Bitcoin was like— when everyone was FOMOing into Bitcoin. You're absolutely going to wish that you built some altcoin positions, something like that, right? So always pay— like, basically just pay attention to 2 things, right? BTC dominance, you know, Bitcoin, and the Bitcoin pairing, right? It will give you a lot of information as to when an alt season is happening, right? You can also use this website, Altcoin Season Index. I will link it down in the description below. Like, is it altcoin season? No. So I hope this video has helped you understand a little more about how money flows in the crypto markets and how you take advantage of this. Like, you always buy when it's boring, right? You always buy when like nobody's talking about it. And at the moment, I bet you that nobody's really looking at the Bitcoin pairing for most altcoins. And I bet you that a lot of retail people do not understand that this is a Bitcoin season right now, and altcoins not performing as well as Bitcoin is going to be absolutely normal. There is going to come a time when altcoins will start outperforming Bitcoin again, but the importance is understanding that what kind of a market, you know, you are in. If you're in a Bitcoin-heavy market, then make sure you have some Bitcoin exposure. For those of you who bought at $40K, I really do not believe that we will test this area very soon. Like, I don't think we're gonna test that area within the next month, maybe 2 months. And within 2 months, then, you know, if we do get, you know, if we do form a high-low on the weekly chart or maybe even the daily chart, then we are absolutely no longer going to test this $40K area. So for those of you who got into Bitcoin with me, which I've been calling for for over a month and a half, congratulations! I think you might have caught the bottom. But for now, if you feel like this video has helped you, it would help me so much if you could just drop a like button. It's a really small gesture, but it really, really helps a lot. And if you appreciate like this educational content like this and you just want the full package, then you are really going to want to check out the private Discord group. Not only are you going to get access to the full trading education where I lay down everything that I've learned over the years, This is where you're going to figure out exactly what works and what doesn't. But you are also going to get market updates basically on, you know, basically in real time. And I'm going to tell you, hey, today's a good day to maybe go balls to the walls. Maybe it's not a good day to be trading. And if that is something you appreciate, maybe you find yourself always confused as to what you should be doing, then, you know, you could check this out. And as a bonus, you're going to get access to all the trading setups that I call, and we are making money every single day. So let's just say that this Discord group is going to pay itself off real quick. But if you're not interested, hey, don't go for it. If you are, the link will be in the description below. For now though, may the gains be with you, my friend, and peace. Peace.