Are all cryptocurrency technical analysis basically a BTC analysis?
I think many who've read the title are frothing at the mouth because they feel offended by the thought alone and others are confused and wonder what the heck I'm talking about. Well, if I'm honest I think that the first group if I'm right, is hilarious! Because if I am right, every technical analysis of a cryptocurrency other than BTC, and the predictions are drawn from them, are still nothing more than technical analyses of BTC.
Do you realize how many people would be adversely affected by that? There are hundreds, thousands even, of different media and sites which rely on the technical analyses of the cryptocurrency markets for making their money. A vast number of sites exist for that specific purpose, and those sites would be exposed as pretty much frauds. Because if anyone would have picked up on this it would be them, and none of them have ever said anything of the kind.
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Well, I've been having this nagging, not quite conscious but still present, thought or brain-itch for a while now while looking at the cryptocurrency market charts for different currencies. It's like my brain saw something, extrapolated its meaning, and then discarded it as a possibility because I'm not smart enough to be the first one to see something like that.
I did manage to convince my brain to allow itself to retain that extrapolated meaning and even now, with that extrapolation of a conscious thought or idea, I still think that I'm probably missing something essential that makes the notion too stupid to even consider.
Well, have a look at this chart here.
These lines represent the price level of two different cryptocurrencies, from April 2021 to March 2022. What I'm seeing here is that almost every price motion in the orange line is represented In the red line. The differences you see in those lines are almost all due to the difference in scale, with the BTC price being in the tens of thousands of dollars and that of the other Crypto being in the hundreds of dollars.
So whatever technical analysis is done on one of them should be valid for the other one as well, they're almost completely synchronized. They're at the very least so much synchronized that they're either subject to the same forces or that one is simply following the one which is driven by the forces that technical analysis can use for making predictions.
Okay, reading that back I realize that I'll need to elaborate on that, and speak plainly. You see one of those lines represents the price of BTC. The other one represents the price of Bitcoin Cash. And it seems to me that the price of Bitcoin Cash is pretty much just following that of BTC. If this is true all the articles and analysts that have been talking about the Bitcoin Cash prizes supports and resistances, the bears vs the bulls talk, all have nothing to do with the Bitcoin Cash price movements. They're basically just a technical analysis of the BTC price movement.
I'm not going to bother boring you with more screenshots or numbers here because in all likelihood I'll be informed that I am missing something super obvious that makes the whole notion ridiculous and the prices of cryptocurrencies are all independent and not simply follow the BTC prices. That would make wasting time on this article somewhat stupid, and I try to avoid wasting my effort and time on something stupid if I can.
But you can place the ETH, BRB, XRP, Cardano, Doge, in the chart above and you'll see the same thing. This to me indicates that you can analyze the shit out of the charts for those currencies, saying that Bulls and Bears are what makes their prices go up or down but it is not. The BTC price is what determines the prices of the other currencies. But that would completely negate and invalidate all those investor and trader websites that provide technical analyses of cryptocurrencies for their (playing) clients pretty boring and without value.
Please explain to me in the comments why I'm wrong. Why the only technical analyses that matter is those of BTC and the other crypto's analyses should not simply say "See BTC".
There must be something I'm not seeing or that I don't understand. Please help me see it.
Thank you for reading this
Stay safe and stay happy.