Learning about PVT Declines
Bearish PVT Divergence occurs when price advances but PVT declines.
1. Bitcoin rises, altcoins flat – New money enters the market and buyers begin accumulating Bitcoin.
2. Bitcoin rises, altcoins rise – Bitcoin is converted into altcoins, which depresses Bitcoin’s price. However, there remains enough new money entering the cryptocurrency space that Bitcoin continues to gain value against both fiat currency and the altcoin market.
3. Bitcoin flat to slightly lower, altcoins rise – Bitcoin outflows continue to pour into the altcoin market. New money stops entering the market, causing Bitcoin to weaken against the altcoin market and fiat.
4. Bitcoin spikes higher, altcoins collapse – Massive flight of capital out of the cryptocurrency market in Bitcoin.
5. Bitcoin sells off, altcoins continue to collapse – Broad market crash generated by the flight of Bitcoin into fiat currencies
Could we get a fall from this ascending wedge ?
Big M for Market Makers ?
Bearish PVT Divergence occurs when price advances but PVT declines.
1. Bitcoin rises, altcoins flat – New money enters the market and buyers begin accumulating Bitcoin.
2. Bitcoin rises, altcoins rise – Bitcoin is converted into altcoins, which depresses Bitcoin’s price. However, there remains enough new money entering the cryptocurrency space that Bitcoin continues to gain value against both fiat currency and the altcoin market.
3. Bitcoin flat to slightly lower, altcoins rise – Bitcoin outflows continue to pour into the altcoin market. New money stops entering the market, causing Bitcoin to weaken against the altcoin market and fiat.
4. Bitcoin spikes higher, altcoins collapse – Massive flight of capital out of the cryptocurrency market in Bitcoin.
5. Bitcoin sells off, altcoins continue to collapse – Broad market crash generated by the flight of Bitcoin into fiat currencies
Could we get a fall from this ascending wedge ?
Big M for Market Makers ?