Every DOGE has its day...

When it comes to the cryptocurrency scene, we all know Bitcoin sets the pace.

As the market leader, Bitcoin has very much determined the sentiment for alt coins and continues to do so to a major extent.

It is therefore important to keep watch of this ‘index’ style instrument, especially in the event Alt coins are of interest (see previous post for commentary on BTC’s current momentum).

What are Alt coins?

The phrase ‘Alt coins’, refers to any cryptocurrency that is not Bitcoin. There are many different categories of Alt coins including top tier secondary coins such as SOL, ETH, XRP, TRON etc.

There are also other Alt coins which can be categorised as meme coins such as DOGE, PEPE or even TRUMP coin just to name a few.

These meme coins, although seemingly insignificant, do for the most part operate on genuine, functional blockchain systems, with mechanics that facilitate recorded wealth transfer. Whilst major Alt coins each have their own blockchain ecosystem with varying features & functionality, tokenomics, burn mechanics and value propositions.

Do Alt coins follow BTC’s movements? (Correlation)

When Bitcoin pumps hard, alt coins tend to push harder (from a % perspective) and can do so for slightly longer, as people get lost in the mania. When Bitcoin sells off however, even if just a relief sequence within a Bullish trend, Alt’s tend to sell off more significantly, which can create situations where Alt coins may be considered as potentially ‘oversold’.

For example, see comparison below between Solana and Bitcoin over the last 4 years.

As you can see, although they share many similarities, the charts are not identical, varying slightly in timing, and varying majorly in relative volatility (%).

• Over the same period of time, BTC gained +368%, whereas SOL gain a whopping +1,908%.

• From their Jan 2025 peaks, BTC retraced -32%, whilst SOL fell more than double, down -67% at its recent low.

• Although relative volatility (%) differed significantly, the timing of movements across both price charts was very much in unison.

Although not all Alt coins are as correlated with BTC’s movements as SOL, at large, alt coins do all mimic timing of aggressive upside in BTC and suffer when BTC is moving to the downside.

Key Question: Are Alt’s currently ‘oversold’?

If Bullfinder AI’s momentum reading on Bitcoin is correct, and if Bitcoin is to see further upward trending movements toward new all-time highs over the coming months, then currently bruised and battered Alt coins may be set to benefit significantly.

As always however, if the price of Bitcoin does flip back to the downside, major Bearish risk comes into play for the Alt coin scene, as they would be set to lose at an accelerated rate.

Please note - Alt coins carry significant financial risk and are not suitable for most people. Ensure you seek formal financial advice from a licensed professional before engaging with such instruments and do not act upon any information contained within our publications without first doing your own research and consulting with your licensed financial advisors.

Noteworthy Alt Coins?

Our team are currently watching the following alt coins over the coming period…

Are ALT coins oversold right now? If Bitcoin recovers from recent sell-off and seeks further all time highs, are Alt coins set for a major comeback?

Time will tell - Stay tuned for further updates…

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