Altcoin is having a high correlation with bitcoin's movement as well. We can't deny that this market is having a very high volatility if we compare to bitcoin. If bitcoin increases 1%, there might be 2, 3 or 4% in altcoins price. That's why a lot of people are interested to put some of their eggs on altcoins market. Some of us is waiting for the next altseason to come where most of the altcoins is having a very high percentage of gain. Will it come in the near future?
If we look at the altcoin index perpetual future, at least there are 2 perspectives that is related with current movement of the price. One is bearish but the other one is still waiting for more confirmation and potential push to the higher region. This what makes trading so interesting with some contradiction that occurs in the market itself. The first pattern that I see is the bearish flag pattern. You can see the pole of this pattern has occurred between the extra down trend on February - March 2020 and after that downward push, a flag pattern which is the uptrend channel occurred to give a sign of the flag. Lately, this flag has already broken down its support trend line.
The second perspective is there is another support trend line that has already formed since April 2020. Although the price has already broken down from the flag pattern, it's still trending above this support trend line as well. If we see it from another perspective too, this can be the support trend line for potential ascending triangle which usually ends up with price prints a higher high. The other factor that makes this very interesting is that the RSI is still trending on the neutral zone as well which indicates there is a lot of uncertainty occurs in the market.
There isn't any other way except waiting for more confirmation if you want to buy the dip on altcoins. We have to wait at least for the price to come closer to the APEX of the triangle to know where the next potential movement will go. Breaks out of the white resistance zone will leads to further increase in altcoins market, good for swing trader. But, breaks down of the yellow support trend line will be a hell!
If we look at the altcoin index perpetual future, at least there are 2 perspectives that is related with current movement of the price. One is bearish but the other one is still waiting for more confirmation and potential push to the higher region. This what makes trading so interesting with some contradiction that occurs in the market itself. The first pattern that I see is the bearish flag pattern. You can see the pole of this pattern has occurred between the extra down trend on February - March 2020 and after that downward push, a flag pattern which is the uptrend channel occurred to give a sign of the flag. Lately, this flag has already broken down its support trend line.
The second perspective is there is another support trend line that has already formed since April 2020. Although the price has already broken down from the flag pattern, it's still trending above this support trend line as well. If we see it from another perspective too, this can be the support trend line for potential ascending triangle which usually ends up with price prints a higher high. The other factor that makes this very interesting is that the RSI is still trending on the neutral zone as well which indicates there is a lot of uncertainty occurs in the market.
There isn't any other way except waiting for more confirmation if you want to buy the dip on altcoins. We have to wait at least for the price to come closer to the APEX of the triangle to know where the next potential movement will go. Breaks out of the white resistance zone will leads to further increase in altcoins market, good for swing trader. But, breaks down of the yellow support trend line will be a hell!