Selecting altcoins in the recovery phase: which one should we choose?

When the market enters a recovery phase, the first question that arises is: which altcoins are truly following the movement? The answer is not as simple as it seems. This recovery demonstrates a key characteristic: there is a very strong correlation between the performance of altcoins and Bitcoin’s trajectory. Not all alternative coins can keep up with BTC’s strength, and this market selectivity is precisely what makes choosing the right altcoins so critical for those looking to trade them in the future.

BTC as an Indicator of Altcoin Recovery

The current recovery clearly shows that Bitcoin remains the main catalyst for the altcoin movement. When BTC rises strongly, only a portion of altcoins organically follow the movement. This means that simply choosing any altcoin can result in falling behind as the market advances. For investors wanting to capitalize on similar recovery cycles, it’s worth keeping a record of the altcoins that have actually demonstrated the ability to keep pace in this wave.

Categories of Coins That Follow the Movement

Among the assets that have maintained alignment with the recovery cycle, some main categories stand out. First-tier coins—such as ETH, SOL, BNB, XRP, BCH, and DOGE—traditionally show more predictable traceability with BTC. In the second layer, assets like SUI, AVAX, and WLFI have also demonstrated relevant tracking ability. Additionally, trending MEME coins (PEPE, WIF, NEIRO, PENGU, FARTCOIN) exhibit peculiar dynamics, while AI tokens (VIRTUAL, TAO) and established DeFi protocols (AAVE, PENDLE, SYRUP, LDO) offer more solid fundamental narratives.

Differentiating Short-Term Trends from Sustainable Opportunities

A critical point often overlooked: not every upward movement represents a viable opportunity. Privacy coins and those Chinese MEME coins or fan tokens that spike temporarily display purely speculative trend characteristics. These assets lack the fundamentals that would allow them to be reliable references for future cycles. The true utility of building a watchlist is to identify altcoins with consistent recovery patterns, not those that only ride temporary waves without the capacity for future repetition.