Big altcoin move incoming
The ETHBTC chart is very helpful for identifying when altcoins are about to have a strong move, the reason for that is because Ethereum tends to run the entire altcoin market. It isn't a perfect indicator, but in general if ETH is performing well, then so are many other altcoins.
ETHBTC is currently retesting a resistance line that it broke below. This is technically a bearish retest, but if ETHBTC can break higher, this could be the opportunity for much of the money in the market to flow into the altcoins. However, on the other hand, if this bearish retest is confirmed it could be very bad for the altcoin market.
This isn't something I would front-run a trade on, but gives us some insight that the next move in the market could be a large one. And it's always good to revisit BTC outlook to see how these may overlap. And in the chart below we can see BTC is still in the range that we have been watching for over a week now.
https://www.tradingview.com/x/fEVToZpp/
So the scenarios that could play out are the following:
ETHBTC bearishly retests and BTC breaks lower, altcoins will get crushed if this happens
ETHBTC bearishly retests and BTC breaks higher, altcoins will likely not trade very well. This is similar to some of the altcoin trading we've had in the last few weeks.
ETHBTC breaks higher and BTC breaks lower, altcoins could be difficult to trade in this scenario as well, likely a mix between some bleeding out, some moving higher, and some stationary.
ETHBTC breaks higher and BTC breaks higher, altcoins will see significant upside if this happens.
My motive in these scenarios as I've mentioned in recent posts, is just to remain on the sidelines. I only like to trade when there is a clear advantage on my side and I don't currently see it. So rather than betting on one side, I opt to just keep my capital safe.
Happy trading!
ETHBTC is currently retesting a resistance line that it broke below. This is technically a bearish retest, but if ETHBTC can break higher, this could be the opportunity for much of the money in the market to flow into the altcoins. However, on the other hand, if this bearish retest is confirmed it could be very bad for the altcoin market.
This isn't something I would front-run a trade on, but gives us some insight that the next move in the market could be a large one. And it's always good to revisit BTC outlook to see how these may overlap. And in the chart below we can see BTC is still in the range that we have been watching for over a week now.
https://www.tradingview.com/x/fEVToZpp/
So the scenarios that could play out are the following:
ETHBTC bearishly retests and BTC breaks lower, altcoins will get crushed if this happens
ETHBTC bearishly retests and BTC breaks higher, altcoins will likely not trade very well. This is similar to some of the altcoin trading we've had in the last few weeks.
ETHBTC breaks higher and BTC breaks lower, altcoins could be difficult to trade in this scenario as well, likely a mix between some bleeding out, some moving higher, and some stationary.
ETHBTC breaks higher and BTC breaks higher, altcoins will see significant upside if this happens.
My motive in these scenarios as I've mentioned in recent posts, is just to remain on the sidelines. I only like to trade when there is a clear advantage on my side and I don't currently see it. So rather than betting on one side, I opt to just keep my capital safe.
Happy trading!
Telegram @SusWhale
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