February 2021, the market is trucking along. With the recent news of Elon Musk buying BTC its all eyes on BTC. As such ALT coin holders are seemingly nervous, other less experienced investors may be trying to get into BTC positions wether on spot or on a long but the experienced have seen this all before. Like clock work.
What you are witnessing was spotted a couple weeks back on the charts, lets take a look:
The BTC.D Chart has been forming a tentative head and shoulder pattern. This is still yet to be confirmed but so far is forming nicely. If it plays out, this could be the beginning of true ALT season:
If we zoom out we can see that BTC.D broke up out of a descending broadening wedge, failed and fell back into the wedge. This is a very bearish sign. It would be more likely that it continues to plummet. The forming Head and Shoulder patten is also a sign of this.
If BTC.D does play out a head and shoulder pattern, it would also be likely to to hit the pink resistance line. This play would be VERY bullish for ALT coins.
Another sign is that the Total and Total2 charts are both at a fibonacci resistance point.
These are testing resistance and looking to break out. An influx of BTC going into ALTs could push the ALT coin market past its resistance.
If we take a look at ALT coins that have broken out and are going into price discovery, we can see that as BTC.D goes to create the possible right shoulder, they are retesting their breakouts which is very healthy:
This is needed to build market structure and will put dip buyers at ease. Many of the coins that broke out had a very violent break, so the retest might seem like a big one to new people in the market. Also the high market cap of crypto in general is making for some very volatile moves where ALTs are concerned. Patience is key here as those who are in low cap gems will be greatly rewarded. Especially if the head and shoulders pattern plays out on the BTC.D chart.
For those who have been on the sidelines wanting to buy these low cap gems, it’s not too late as most of these coins still have a tiny market cap and now is the time to start opening positions.
Another thing to keep in mind is that the ALT coin market is still grossly undervalued compared to BTC. Soon the ALT market should start to catch up to where it should be.
All in all, if you are holding ALTs, you may want to approach from a position of HODL. Dont chase pumps. ALT season is not over, things are literally just getting started. We have a long ride to go and many gains to be made.
This post was written by BlockAdvisor