There are always two components to each altcoin's price. Ane is the money'southward own characteristics: Fundamentals, investor sentiment toward the asset, liquidity and trading volume, among many others. Another powerful cistron — the one that often renders any altcoin-specific dynamics irrelevant — is Bitcoin's performance.

Similar it or non, when the male monarch of cryptocurrencies soars, at that place is room for the shabbiest shitcoins to dial way above their weight. When BTC tumbles, even the sturdiest alts can take a proportional hit. It's a question of knowing which is which.

Many traders within the crypto markets are relatively unfazed by decreases in the U.South. dollar value of their holdings, considering they trade almost exclusively against Bitcoin on key exchanges where the liquidity of the altcoin / BTC pair may be more than attractive than the same alt / stablecoin pair.

And of course, there are plenty of trading diehards who don't intend to cash out their position into fiat in the near future at all: The cohort who believe that increasing their Bitcoin portfolio is more than of import than transferring into the inflationary U.Southward. dollar, or another fiat currency.

But information technology'south all correlated, right?

While it may seem that coins' own conditions are irrelevant given Bitcoin'south outsize influence, they practice, in fact, make a difference. Assets with a good for you outlook of their ain are frequently amid the summit gainers when things are bullish, and when there is a market-broad correction, they can recover faster and harder than the rest of the altcoin bunch — and even Bitcoin itself.

So how do you lot tell which coins' market place state of affairs is healthier than others' when everything is gory red? The VORTECS™ score, an algorithmic tool comparing historic market atmospheric condition around each money to the present state of affairs, tin can offer some clues. Exclusively available to subscribers of Cointelegraph Markets Pro, each asset's VORTECS™ score indicates whether the nowadays combination of the coin'due south market and social metrics is historically bullish, bearish, or neutral.

Here are some very recent examples. When Bitcoin plunged below $30K on Tuesday following the surly news coming out of China, stablecoins remained the only course of digital assets not to go deep into the red territory.

However, over the next 24 hours, BTC recovered many of the losses, billowy back to in a higher place $33K. Not all altcoins were quick to replicate this relief rally, but many of those that did were aided by historically favorable individual atmospheric condition that the VORTECS™ indicator captured hours before the negative trend turned around.

PARSIQ (PRQ) Analysis

24-hour price alter: +eighteen.83% vs. USD, +2.21% vs. BTC

PRQ saw a rough week as its price declined from $0.88 on June 17 to $0.56 just before the Bitcoin- induced market-wide slump on June 22. It so slipped further downwardly to $0.35.

While the coin's VORTECS™ score line has been yellowish (neutral) for much of the calendar week, it began picking upwards every bit the cost was sliding down, suggesting that the patterns of market and social conditions around the coin were looking increasingly like to those in the by that were consistently followed past significant price increases within 12 to 72 hours. The coin was ripe for a breakout — if and when Bitcoin-driven macro forces allowed.

BTC'south changeabout that came belatedly on June 22 meant that the way was open up for fundamentally strong altcoins to rebound. PRQ's VORTECS™ score peaked at 86 (carmine circumvolve in the graph) shortly after the negative tendency reversed, halfway through the coin's jump from $0.35 to $0.55, although the score's trend had been upwards for several hours.

Solana (SOL) Assay

24-60 minutes price change: +26.36% vs. USD +12.96% vs. BTC

Although SOL'south VORTECS™ score did non cross the psychologically of import threshold of 80 this week, it has been in the high 70s consistently, indicating the model's reasonably high confidence in the coin's favorable outlook.

When its price began to sink along with the residue of the market place, VORTECS™ dynamics remained positive: In fact, the low price point ($21.41, offset red box) coincided with the highest score (77, carmine circle). Judging past the historical precedent, the money was poised for an energetic recovery.

When the tide turned, SOL was among the biggest winners of the day, regaining 26% confronting USD and almost 13% against Bitcoin.

Enjin Coin (ENJ) Assay

24-hour price modify: +18.73% vs. USD, +seven.30% vs. BTC

Much like PARSIQ's case, Enjin's VORTECS™ score shot up equally the crypto marketplace followed Bitcoin into a tailspin. It reached a loftier of 79 early on on June 22 (cherry-red circle) and remained in the green zone throughout the entire wink crash.

As the correction was over, the cost of ENJ shot up from the low of 79 cents to the loftier of $1.04.

Cointelegraph Markets Pro is bachelor exclusively to members on a monthly ground at $99 per calendar month, or annually with two gratis months included. It carries a 14-day money-dorsum policy, to ensure that it fits the crypto trading and investing research needs of subscribers, and members can cancel anytime.

Important Disclaimer

Cointelegraph is a publisher of financial information, not an investment adviser. We do non provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and conduct pregnant adventure including the hazard of permanent and total loss. By operation is non indicative of futurity results. Figures and charts are right at the time of writing or as otherwise specified. Alive-tested strategies are not recommendations. Consult your financial advisor before making financial decisions. Full terms and weather condition .