Ever wondered why whenever bitcoin goes up, alts go down?

Every single time.

Even yesterday. As Bitcoin grazed the $7200 levels, all the alts I was trading fell like bloody rocks. I had to take a small loss on most positions even as I wasn't fast enough to close all of them. (God I really need a bot.)

My personal problems aside, I hope to provide insight on the topic with this post, while keeping it less than 250 words so you get the main idea without reading a small book.

Ready? Let's go!

So people trade the financial markets. And people are very emotional. People are also very, very greedy.

What do these two things have in common?

Simple. Whenever someone takes up a position, and it starts going up without pulling back, they start thinking of lambos and boats.

They don't realise that the volume would soon wear out, and the selling would begin.

So when it does hit that ceiling where it doesn't go past, it starts plummeting like a hot potato. And of course the greedy guys get stuck at the top, and come out of their fugazi.

The same is true for when its going down. They feel that the downturn is just temporary, and that it'll go up again. So they get stuck again.

Why did I tell you all this stuff about the market?

Well, simply because emotion is everything in trading. At least getting rid of it is.

And emotion is what causes alts to fall when Bitcoin is rising.

The thing is, once Bitcoin starts showing signs of rising, people who weren't previously in positions in Bitcoin liquidate their alt positions to enter trades in Bitcoin. Thus making the prices of alts cheap.

When they realise that it's a bull trap, they pull their money out and bring it back to the alts, which pumps the alts heavy. That's why alts always recover after bitcoin has fallen.

So now you know why. And in less than 250 words too.

Thanks for reading!