Update on Markets

Good Morning, Ladies, Gentlemen. Excited for a new week!

Since Bitcoin reached new All Time Highs after taking out recent high around $ 3000, we have not seen significant price action yet. We do need the confirmation trigger to get the bull run started fully on rising volume. Might take a while until we get to the trigger though, but be sure Fiat money is on the way into the markets, just needs some days to manifest. Similar to the spike in BTC, with it there is a new spike in interest concering cryptocurrencies, which is nice.

Today I wanna share an interesting chart of Coinmarketcap:

mktcap1.png

What does this chart tell us? Well, first of all, Total Market Capitalization is near its All Time High, which means if it gets triggered we see massive inflow of money into general crypto MKTcaps which will be sufficient to trigger the confirmation of BTCs earlier breakout. To be clear, the FOMO is developing, however not yet manifested. We will be looking at far higher prices next week, and especially in 1 month from now.

When it comes to ALTS, it becomes obvious that they lag a bit behind, which means that ALTS generally are in an upwsing but struggle a bit because of BTCs recent strong upmove. Which fits totally with what happened in 2013. BTC started the kickoff, ALTS lagged behind for some days, only to follow the same way a few days behind, rising exponentially to a degree in which ALTS tend to pump harder than BTC, which in turn means the ratio ALTS/BTC kicks up in due time. However it may need some more time to manifest in the markets. When BTC MKTCAP triggers its ATH, we likely see BTC being dominant until the point when ALTS MKTCAP triggers its ATH too. So generally speaking, a rising / spiking $BTC price is to be seen positively when you are positioned in ALTS, given you have the time and patience to survive the intial dip again. I generally do not advise to sell ALTS because being in there is clearly a winning move. If you want to take the risk and sell some ALTS when BTC spikes, you can obviously do it, just make sure you hit the buy button very quickly when things are about to turn upside again.

I do believe that the next two years will be the most magnificent we ever witness when it comes to excitement in the markets. imho, critical mass is about to trigger which means the crypto rally will then be superior to traditional and metal markets. Huge money inflow is expected from all kinds of industries which eventually leads to a global FOMO on indvidiual and business basis. If you have not yet a sufficient longterm strategy or portfolio, i *strongly* advice to do qualitative research about various coins and projects BEFORE $BTC triggers a new ATH. Time is running out, and if you are not well-positioned at this time, you will have problems in coping with the turbulences of coming weeks, especially if you are very shortterm oriented. There will be a time when it is very recommended to switch from Shortterm to Longterm Strategy, and the point is near.

Make sure you are absolutely satisfied with your holdings, and the coins you have picked. Money is not only energy, but also a vote. In this specific situation, it is a vote towards which coins you are going to trust in providing you a financial independent future. Look at your coins, are these coins that you trust so much that you will put all your investment into? If you are not allowed to touch your portfolio for two years, would you still be happy about your holdings or would you change it?

Some further brainstorming and research is recommended at this stage.

Besides, I decided i will post more articles on my Blog again, its been a long time and in actuality one of my most favorite things to do. So stay tuned, trade safe & have a nice trading day,

yodatransparent

Why BTC’s Upmove is Good For Alts

Dear Crypto Enthusiasts,

Total Market Capitalization exceeded $ 100B for the first time ever, thus marking a significant milestone in crypto history.

btc mktcap

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.

BTC on way to 3k

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.
polo reaction

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:

dash usdt.png

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.

dash btc.png

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.png

$ETH/USDT accelerating, merciless forcing out last bears before going parabolic. Another strong bull bar today on high volume, looking strong.

eth btc

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.


 

nxt usdt

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

nxt btc.png

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 usdt.png

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.

str btc.png

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,

yodatransparent