Rise of the ALT SZN

February 6, 2020 11:55 pm Published by Leave your thoughts

Make no mistake about it. ALT coins are the fuel of the crypto currency market. If you have been watching the market as closely as I have been, you would be seeing the behaviour of both Bitcoin and the ALT coins. To put it simply:

Bitcoin rises with sideline and/or new money

Bitcoin funds then buy into ALT coins

ALT coins rise

This attracts investors that buy ALT coins

ALT coin funds go into Bitcoin

Bitcoin rises and pulls up the market

Its a reciprocal relationship and the rise of ALT’s contributes to the rise in BTC.

As I have stated in a previous post, we need to start thinking of Bitcoin differently. It was created to be an electronic payment system, yes. However, things in practice do not always reflect what they are on paper. In practice bitcoin acts more like an index of the market. It follows the TOTAL Cryptocap chart very closely. It reflects the overall health of the market and when it is under preforming, the market in-turn under preforms. Just like if the S&P or the NASDAQ was under performing, we would all know fully the scope of how the US top corporations would not be performing well. Its no different.

So, ALT’s have been doing well in the last month, slowly rising from the depths of the crypto abyss. Will we moon? In short, yes. The longer answer is thus. The jump start of the ALT market was a signal. This signal lets us know that ALT’s are not dead. It also lets us know that the powers that be know fair and well that this market NEEDS ALT coins to survive. However, the ALT coins are still not decoupled from the moves of BTC whether they are in tandem or contrary to BTC movements. So we have to be mindful that IF BTC goes for a dip, the ALTs will too.

BTC may rise over the 10K mark but it is showing signs of exhaustion. We have bearish divergence and we are still in that pesky rising wedge pattern. This pattern usually breaks downwards, it does have a small chance, around 32% of breaking up if BTC gets very bullish. If it does break up expect a moon shoot. The odds are however that this will most likely break to the down side. We have discussed this in a previous post here. As per classical TA, this has the odds of breaking down, before the steady rise up for the multiple year cycle of a bull run.

Bitcoin Chart Feb 6 2020

Over exuberant attitudes are the path to getting rekt in this market. Like poker sometimes you have to know when to hold and know when to fold. Also, missing out on smaller gains to confirm is not a bad thing. There are many gains to be made still. Keep those stop losses in check and if you are in and out be ready for snap movements in the market, especially if you are all in ALT’s.

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This post was written by BlockAdvisor

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