Most of the top 100 cryptocurrencies have dropped sharply, and 72% of them are down 50% or more from their all-time highs. In this situation, it’s more important than ever to have a clear, disciplined plan.
Miles Deutscher, a veteran analyst, has come up with an eight-step plan to help altcoin investors deal with risk, find real opportunities, and get through downtrends while Bitcoin (BTC) remains the main benchmark.
Main Point: Compare Every Altcoin Trade to Bitcoin
The main idea behind Deutscher’s work is simple: if an altcoin is getting weaker compared to Bitcoin, it’s usually better to trade with Bitcoin rather than chase relative strength.
In risk-off markets, the leader tends to do better than the rest of the altcoin pack. This is why it’s important to keep an eye on BTC pairs before investing.
Updated and Reworded Eight-Step Survival Framework
1. Compare Altcoin Performance to BTC
Always do this. If your altcoin’s trend is going down compared to Bitcoin’s, think about the trade again or switch to a stronger leader.
2. Be Disciplined with Your Trading
Only enter positions at clear support levels on higher time frames (12-hour, daily, 3-day, weekly).
Set strict invalidation points; if your stop is hit, think about the thesis again.
3. Use On-Chain Signals with Charts
Don’t just look at the price. To get a better idea of true momentum, look for on-chain activity that supports it, like buy pressure, accumulation patterns, and fund flows.
4. Keep an Eye on Capital Flow Indicators
Use on-chain analytics and market data platforms to see where money is going and to gauge the strength of moves and potential reversals.
5. Check the Health and Mood of the Ecosystem
Look at activity, developer involvement, and community life.
Even if the technology is good, a project can fail if its community is toxic or inactive.
6. Use Two Portfolios to Manage Risk
- Core Portfolio: A mix of fundamentally strong altcoins that meet several technical and on-chain requirements.
- Degen Portfolio (up to 20%): A smaller portion set aside for riskier bets allows exploration without putting overall stability at risk.
7. Use a Sizing Rule Based on Conviction
Think about a scoring system that gives more weight to position size based on confidence.
If you really believe in a thesis, you should be able to handle the right amount of exposure.
8. Don’t Buy “Dips” Based on Feelings
Buying without a plan during downturns can often leave you stuck in weak setups.
Look for situations where momentum and fundamentals align, and be ready to wait for clearer signals before entering.
In the Market, There Is Fear, Patience, and Selective Opportunity
Recent talk in the market shows that people are being careful. Bitcoin briefly broke through a significant psychological level, and Ethereum had a big daily drop, showing that traders are unwilling to take risks.
When this happens, patience and trend confirmation tend to work better than making rash bets. Some analysts point to sectors holding up well — privacy-focused and zero-knowledge coins have gained attention as potential discretionary upside in bearish conditions.
Themes for the Future: Dinosaurs and Structural Leaders
Some “dino coins” — long-term, fundamental projects with strong use cases and liquidity — are expected to outperform.
Industry experts say coins with steady demand, active development, and strong on-chain metrics may reach new highs even when the rest of the market struggles.
⚠️ Be careful: entering trades based on momentum late in a downcycle can backfire, and narratives that aren’t well understood can shift quickly.
The Bottom Line for November
With many top altcoins in deep drawdown, it’s better to be disciplined and methodical than to make rash bets.
A framework that includes Bitcoin benchmarking, strict technical discipline, on-chain and flow analysis, and careful risk management—along with position sizing—provides a path to navigate volatility.
In this situation, patience, selective entry, and well-structured portfolios are more likely to protect your capital and prepare you for gains when the market begins to trend again.
