Trading Family,
To say that our altcoin market has been disappointing would be the understatement of the year. While there definitely have been some winners (I have held Solana through the $8 low), the majority have been a large disappointment. In fact, the last I read, only 42 altcoins have outperformed Bitcoin since the bear market bottom was put in. This is an incredible stat to think about and very telling. Altcoin traders have a difficult task in beating the BTC hodl'ers for sure.
However, recently there have been some hidden indications that our altcoin market will soon increase our odds of success.
First of all, Bitcoin's low fees. Low fees on the Bitcoin blockchain is often a hidden health indicator for the coin signaling weak demand. People often see low fees as a positive thing. But what's actually happening here is that there is low demand for transacting on the chain, therefore, in order to increase the demand, transaction fees are forced down.
Weaker demand does seem to correlate with what the BTC dominance chart is showing us.
You can see from the chart that we have a large sell side liquidity block that has formed, indicating large sell side volume in dominance. Additionally, my indicator has flashed a red dot, signaling that it is time for dominance to drop. We also have our RSI and Macd, crossing down. And if we break from that channel, dominance drop momentum should accelerate.
This brings me to our TOTAL3 chart which is all altcoins excluding Ethereum. The chart is showing us that we have reached an extremely critical support trendline. Price is currently bouncing from it. Additionally, there are large volumes of buyers at this point. You can observe this by the VRVP candles and the liquidity blocks indicator. But contrary to BTC.D in which the RSI and Macd were crossing down, TOTAL3 shows our RSI and Macd crossing up! This is bullish for alts.
Finally, it is a great sign to see that our "M" pattern has looked to have completed right at our point of support.
I have drawn a projected pathway from here. In the first part of our next week, we may see a bit more pump. News of the passing continuing resolution here in the U.S. is still trickling out. Monday, as stock traders jump back in, I would imagine we see more pump as traders feel good about the averted gov't shutdown. This may trickle into Tuesday. But then Wed. is the Fed's day. We are expecting further pause to interest rate. Everyone will be listening to the Fed speak and parsing every syllable that is uttered from J. Pow's tongue. What is says and the bias that is interpreted will be key. I am expecting mostly a non-event here. Which means that bullish bias may wane once again. Crypto, mostly altcoins, really only pump on good news. But negative and even neutral news is a sell to sideways event. Thus, I expect we may hit another local top around Wed. afternoon at which point the altcoin market starts to sell a bit again OR it simply continues sideways again for a few more weeks. Sooner or later though, I believe we are headed towards that 1.3 trillion resistance. It is worthwhile considering to stay in a holding pattern unless we drop below our all-important support. Watch this line closely and draw it on your charts. It will be key!
✌️Stew
To say that our altcoin market has been disappointing would be the understatement of the year. While there definitely have been some winners (I have held Solana through the $8 low), the majority have been a large disappointment. In fact, the last I read, only 42 altcoins have outperformed Bitcoin since the bear market bottom was put in. This is an incredible stat to think about and very telling. Altcoin traders have a difficult task in beating the BTC hodl'ers for sure.
However, recently there have been some hidden indications that our altcoin market will soon increase our odds of success.
First of all, Bitcoin's low fees. Low fees on the Bitcoin blockchain is often a hidden health indicator for the coin signaling weak demand. People often see low fees as a positive thing. But what's actually happening here is that there is low demand for transacting on the chain, therefore, in order to increase the demand, transaction fees are forced down.
Weaker demand does seem to correlate with what the BTC dominance chart is showing us.
You can see from the chart that we have a large sell side liquidity block that has formed, indicating large sell side volume in dominance. Additionally, my indicator has flashed a red dot, signaling that it is time for dominance to drop. We also have our RSI and Macd, crossing down. And if we break from that channel, dominance drop momentum should accelerate.
This brings me to our TOTAL3 chart which is all altcoins excluding Ethereum. The chart is showing us that we have reached an extremely critical support trendline. Price is currently bouncing from it. Additionally, there are large volumes of buyers at this point. You can observe this by the VRVP candles and the liquidity blocks indicator. But contrary to BTC.D in which the RSI and Macd were crossing down, TOTAL3 shows our RSI and Macd crossing up! This is bullish for alts.
Finally, it is a great sign to see that our "M" pattern has looked to have completed right at our point of support.
I have drawn a projected pathway from here. In the first part of our next week, we may see a bit more pump. News of the passing continuing resolution here in the U.S. is still trickling out. Monday, as stock traders jump back in, I would imagine we see more pump as traders feel good about the averted gov't shutdown. This may trickle into Tuesday. But then Wed. is the Fed's day. We are expecting further pause to interest rate. Everyone will be listening to the Fed speak and parsing every syllable that is uttered from J. Pow's tongue. What is says and the bias that is interpreted will be key. I am expecting mostly a non-event here. Which means that bullish bias may wane once again. Crypto, mostly altcoins, really only pump on good news. But negative and even neutral news is a sell to sideways event. Thus, I expect we may hit another local top around Wed. afternoon at which point the altcoin market starts to sell a bit again OR it simply continues sideways again for a few more weeks. Sooner or later though, I believe we are headed towards that 1.3 trillion resistance. It is worthwhile considering to stay in a holding pattern unless we drop below our all-important support. Watch this line closely and draw it on your charts. It will be key!
✌️Stew
Stewdamus Trades -
Prophesying the price action of markets one chart at a time.
Crypto predictions, targets, how-tos, and much, much more!
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stewdam.us
Prophesying the price action of markets one chart at a time.
Crypto predictions, targets, how-tos, and much, much more!
Never miss a prophecy. Sign up for my free newsletter at:
stewdam.us
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Stewdamus Trades -
Prophesying the price action of markets one chart at a time.
Crypto predictions, targets, how-tos, and much, much more!
Never miss a prophecy. Sign up for my free newsletter at:
stewdam.us
Prophesying the price action of markets one chart at a time.
Crypto predictions, targets, how-tos, and much, much more!
Never miss a prophecy. Sign up for my free newsletter at:
stewdam.us
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.