This chart was shared once by famous and respectful trader @HsakaTrades
It represents us the dominance of ALTS in the market. Once we see significant pump - Alts usually do parabolic rally.
Currently chart shows us possible bounce:
The trigger to this is uptrend move of the price.
Also RSI shows us bullish move.
But, we may see the bearish reaction from 9.32M level (red line), where W 200 ema crosses which can stand as a resistance. And if we look at the history, so far the price couldn’t close above this level on the M timeframe
Also from RSI side, I expect it to come to 50% level from which it may reject, for bullish momentum it should cross 50% (will write about it below)
So, once the price comes to the 9.32M level, we as traders should be cautious with leverage longs. But, it doesn’t mean that you should open short positions. I never short the TREND
What can happen once the price reaches 9.32M level?
1. Either we see bearish reaction and at this time market decides to correct -> BTC dumps 10 - 20 or more %, and ALTS vs BTC chart will dump till next possible support (blue box) from where I will expect a significant bounce with real bullpen
In this case RSI rejects from 50% level and dumps till 34% or below (if it does, look for bullish Diver on D TF and other TFs)
2. BTC goes parabolic and the price of Alts vs BTC chart manages to break above 9.32M level with Monthly close above it, in this case it will pump until the levels above that you can see on the chart
RSI in this case breaks through 50% and goes higher towards to 70 - 80% or higher. -> ALTS go insane
Conclusion:
Be cautious once price touches 9.32M level
It represents us the dominance of ALTS in the market. Once we see significant pump - Alts usually do parabolic rally.
Currently chart shows us possible bounce:
The trigger to this is uptrend move of the price.
Also RSI shows us bullish move.
But, we may see the bearish reaction from 9.32M level (red line), where W 200 ema crosses which can stand as a resistance. And if we look at the history, so far the price couldn’t close above this level on the M timeframe
Also from RSI side, I expect it to come to 50% level from which it may reject, for bullish momentum it should cross 50% (will write about it below)
So, once the price comes to the 9.32M level, we as traders should be cautious with leverage longs. But, it doesn’t mean that you should open short positions. I never short the TREND
What can happen once the price reaches 9.32M level?
1. Either we see bearish reaction and at this time market decides to correct -> BTC dumps 10 - 20 or more %, and ALTS vs BTC chart will dump till next possible support (blue box) from where I will expect a significant bounce with real bullpen
In this case RSI rejects from 50% level and dumps till 34% or below (if it does, look for bullish Diver on D TF and other TFs)
2. BTC goes parabolic and the price of Alts vs BTC chart manages to break above 9.32M level with Monthly close above it, in this case it will pump until the levels above that you can see on the chart
RSI in this case breaks through 50% and goes higher towards to 70 - 80% or higher. -> ALTS go insane
Conclusion:
Be cautious once price touches 9.32M level