Current state of affairs
As of today you may have noticed that all ALT coins are stopped, stuck at a certain level.
All of the ALT coin charts have a similar pattern. They also all look like there is much more room to the upside left to go. But whats stopping us now?
The Macro Perspective
We are currently sitting at past resistance on the monthly.
From where we are now there are some things we have to consider.
Last time we hit this resistance we went into a 7 month down trend.
The market seems like it could use a cool down. The BTC and ALTs have been on the rise, in a parabola. Most investors would likely prefer to see a cool down and a higher low test of support.
RSI’s are still over bought.
The ALT market being at this resistance line, with over extended bulls may make it hard to get over if we don’t have an influx of new money or sideline tether coming into the market. With that said, many investors will likely wait to see what happens before they decide what to do. Buy the break out or wait for the dip.
ALTs like Icon (ICX), Tezos (XTZ) and Hash Graph (HBAR) have gone up considerably in the last month, investors will likely feel as though they are buying the top.
But there are also bullish cases.
All of these same ALTs are showing reversal patterns in the mid to long term. They are all exhibiting long round bottom patterns with a break out (some still have yet to break out but are on track to).
They are approaching golden crosses on the daily and have already done so on the 4 hour for the most part.
They are cheap as most of these ALTs are still down 90% from previous ATH. This has the potential to attract many new investors if prices continue to rise.
They can get back to previous ATH if the long term projections for this market are correct.
The long term projections for this market hitting at least one trillion dollars in market cap are possible as the market as a whole is greatly undervalued at the moment, considering the technology that has been developed within it.
This last point can be both bullish and/or bearish, which is the fact that Bitcoin has been difficult to predict as of late, there has been a lot of manipulation it would seem, which turns off potential new money from entering the market. Its wild swings can push it up at any moment and do the same in the opposite.
So where do we go from here?
Bitcoin on its own does seem to be behaving bullish but the difference this time as opposed to summer of 2019 is that ALTs are moving with Bitcoin which suggests a more healthy market over all. ALTs also attract new investors which I have observed a growing amount of since the start of 2020. But it would seem that a correction is due, ALT’s should attempt to test some of the support lines in the charts posted. This would be good to allow good clean entry points for those that missed the boat. It would allow RSIs to cool off and ease the nerves of the traders and holders. Lets just see if Bitcoin gives us that chance without any more erratic movements.
The alternative is we continue the parabola which historically has happened at the start of new bull runs right after the re-accumulation stage. However, if this happens it may hurt more in the long run if it cannot be sustained.Tags: ALT Coins, Alt's, Total2 Chart
Categorised in: Cryptocurrency Markets
This post was written by BlockAdvisor