Dear Crypto Enthusiasts,
Total Market Capitalization exceeded $ 100B for the first time ever, thus marking a significant milestone in crypto history.
At time of writing, $BTC resides around $ 2850, currently fighting its way through to $ 3000, which is a matter of time given the parabolic weekly rise we have entered.
Obviously the most important question is: What effect does the BTC move have on Alts? So we figure that out in this post.
Polo experiencing a mostly reddish time with an average down of 10% in the day, when looking at the top volume coins. Which is not surprising, given the fact BTC shot up almost $ 300 within a day, triggering a new All Time High, which will again lead new buyers into the market.
So of course Alts dip down when BTC makes a strong move. After all they are still measured against the King of Alts. However watching Alts/BTC market is not the only way of assessing performance, thus I had a close look at the Alts/USDT charts to get additional clues for future directions. Lets compare both /BTC and /USDT charts of some coins to figure out what is going on:
From the looks in USDT, DASH look pretty strong, resisting any larger correction as for now, attempting to build another bull reversal bar on high volume at the time of writing. Any higher high from here would lead to acceleration, new buyers, increased support, potential spikes. Definitely a buy above green.
What a different outlook in DASH/BTC. So from beginning of the year, DASH/USDT trended upwards, while DASH/BTC had a spike and then corrected for a long time. However look at the high volume on some buy bars. People are aware that DASH will have more to come in due time, thus accumulating at lower range. So BTC drags up the value of DASH/USD, but yet supresses its value against /BTC, which will TURN at the moment when DASH/USD will go for new All Time Highs. At that point the Marketcap of DASH will rise quickly, thus dragging up DASH/BTC with it, so both /USDT and /BTC will pump. The trendline retest area of the last chart DASH/BTC is definitely buy zone, so I do not imagine it will stay at this range for long before reversing up. If it does so, be quick to enter and hold longterm.
$ETH/USDT accelerating, merciless forcing out last bears before going parabolic. Another strong bull bar today on high volume, looking strong.
However ETH/BTC has not yet a made move. From the charts above it kinda looks like /BTC is lagging behind about 3 days before the /USDT price move manifests in /BTC. Support is holding, being retested again for 2nd confirmation at the time of writing.
So I suppose that as soon as ETH/USDT will spike, ETH/BTC will turn around soonish (around the support) in order to go for new ATHs. Also here it will lead to parabolic moves in the future when /USDT and /BTC start to pump at the same time.
Wow, so NXT is showing serious signs of strength towards new Highs and triggered new entries today on insane volume. I would like to see the reaction around the last Highs resistance level, but expecting the confirmation by tomorrow, which will lead to insane acceleration and spikes. But wait, lets check NXT/BTC
In short: Nothing yet to be seen. But as we are above EMA 20 and EMA 200, a spike could anytime occur, likely when the daily bar gets triggered by tomorrow in /USDT. Also here, positioning in anticipation is likely very profitable, as there is almost no risk involved.
STR already triggered a buy signal in /USDT on volume, trying to build the bottom here, which will likely lead to new Highs in the next days.
Against BTC, STR shows significantly less strength, but it is obvious we are the very bottom, retesting support again + EMA 20 + EMA 200. The entry is not yet triggered, that would be safe entry, but still early.
There are more charts out there, but the picture is almost the same, so I will just summarize. Rising BTC drags up the USD price of Alts, which then trigger new entries and accelerate. At some point the Marketcap rises so quickly, that Alt/BTC rises as well, even if BTC is still in uptrend mode. It becomes more and more likely that both /USDT and /BTC charts will pump at the same time, PLUS BTC going more and more parabolic. #goldenage
As a consequence of this analyis, I will be adding positions in STR, XMR, ETC, LTC, NXT, REP, ZEC in the next days before the rally takes off. We had a pretty adventurous time in smallcaps these last days, usually after that Big Caps will have its time.
If you are interested, just compare the /USDT to the /BTC Charts on Polo to get further clues. When signals get triggered in USDT, it usually leads to acceleration in /BTC.
May the force be with you,