Hello buddies, alt-bitcoin ratio at linear downtrend. Alt-bitcoin ratio is alt market cap divided by bitcoin price. This idea I take from Tradingview user @RealMcafee . Here I normalise chart.
Shown is monthly chart with 6 month moving average. Why 6 month? Well, to convert from daily to monthly time frame we divide number of days of average by number of days in 1 month. Crypto is traded 24/7 so we divide 200 by 31 and get 6 (after rounding). So 6 month moving average is 'like' 200 day moving average if we assume 31 days in 1 month. OK?
we see alt bubble deflation at a crucial point. Breakout here can lead to big gains over bitcoin, but dump here can be massive. This is a high risk entry zone. I remind, alts have zero usecase. No one is using alts except fringe people, therefore we know all alt prices are highly over-inflated still (same bitcoin).
Does not mean it will dump now.
This is not any advices for trading financially.
Shown is monthly chart with 6 month moving average. Why 6 month? Well, to convert from daily to monthly time frame we divide number of days of average by number of days in 1 month. Crypto is traded 24/7 so we divide 200 by 31 and get 6 (after rounding). So 6 month moving average is 'like' 200 day moving average if we assume 31 days in 1 month. OK?
we see alt bubble deflation at a crucial point. Breakout here can lead to big gains over bitcoin, but dump here can be massive. This is a high risk entry zone. I remind, alts have zero usecase. No one is using alts except fringe people, therefore we know all alt prices are highly over-inflated still (same bitcoin).
Does not mean it will dump now.
This is not any advices for trading financially.