Unlocking Profits with Relative Strength in Crypto Bull Runs: A Trader's Guide

In the fast-paced world of cryptocurrency trading, relative strength emerges as a crucial ally during bull runs, according to crypto analyst Miles Deutscher. His straightforward playbook advises traders to capitalize on market dips by going long on alternative coins (alts) that demonstrated superior performance against Bitcoin (BTC) and Ethereum (ETH) before the dip. These alts should also boast compelling narratives aligned with the upcoming market phase. This strategy leverages the momentum of strong performers, turning temporary pullbacks into lucrative buying opportunities. For instance, if an altcoin has outperformed BTC by 20% in the lead-up to a dip, it often rebounds faster, offering traders amplified gains in a recovering market.

To implement this effectively, Deutscher recommends creating two dedicated watchlists on TradingView: one for strong alts versus BTC and another presumably for strong alts versus ETH, though his tweet cuts off there. This setup allows traders to monitor relative strength indicators in real-time, tracking metrics like the alt/BTC ratio and volume trends. In a bull market, where BTC and ETH often lead the charge, identifying alts with resilience can mean the difference between average returns and outsized profits. Consider recent market cycles where narratives around decentralized finance (DeFi) or artificial intelligence (AI) tokens drove outsized gains. Traders focusing on relative strength could have spotted tokens like Solana (SOL) outperforming ETH during the 2021 bull run, positioning themselves for explosive rallies post-dip.

Applying the Playbook: Spotting Opportunities in Altcoin Dips

Diving deeper into the strategy, the key is to analyze historical performance data before entering trades. On a dip, review charts showing how alts held up against BTC and ETH in the preceding weeks. Look for patterns where these alts not only maintained value but gained ground, indicating strong buyer interest. Combine this with narrative strength— for example, if the next market phase favors gaming or metaverse projects, prioritize alts like Axie Infinity (AXS) or Decentraland (MANA) that fit the bill. Trading volumes play a vital role here; high volumes during outperformance signal sustained interest, reducing the risk of false rebounds. Without specific real-time data, traders should reference on-chain metrics from sources like Dune Analytics to confirm accumulation by whales, which often precedes major moves.

From a risk management perspective, set clear entry and exit points based on support levels. If BTC dips to $60,000, target alts that previously showed strength above this threshold, aiming for a 10-15% bounce. Institutional flows, as tracked by reports from firms like Glassnode, can provide additional context, showing how big players are rotating into high-relative-strength alts. This approach isn't just theoretical; in the August 2025 market environment, with BTC hovering around recent highs, applying this playbook could yield significant edges. Remember, diversification across 5-10 such alts minimizes single-asset risk while maximizing exposure to bullish narratives.

Enhancing Your Trading Edge with Tools and Insights

Beyond watchlists, integrate technical indicators like the Relative Strength Index (RSI) on alt/BTC pairs to gauge overbought or oversold conditions. For SEO-optimized trading strategies, focus on long-tail keywords such as 'best altcoins to buy on BTC dips' or 'relative strength trading in crypto bull markets.' This method aligns with broader market sentiment, where positive news cycles amplify strong performers. As of the latest available insights from August 15, 2025, per Deutscher's post, building these habits positions traders to thrive. In summary, relative strength isn't about chasing hype but methodically selecting winners based on data-driven evidence, ensuring you're always one step ahead in the volatile crypto landscape.

Overall, this strategy emphasizes patience and preparation, transforming bull run dips from threats into opportunities. By prioritizing alts with proven outperformance and narrative tailwinds, traders can achieve consistent results. Whether you're a seasoned pro or new to crypto trading, adopting this playbook could significantly boost your portfolio's resilience and growth potential in dynamic markets.