Bitcoin Breaks Resistance. Bring on the Altcoin Catchup!
Hey guys,
Earlier today, I tried to take a rational look at why the alts are lagging.
I tried to highlight the fact that Bitcoin was sitting at resistance in a downtrend and that the alts were selling off in anticipation of the trend resuming.
My point was that if Bitcoin didn’t break resistance, it would be open to new lows which the alts were already looking for.
If on the other hand, Bitcoin could break out, I was looking for the alts to catch back up pretty swiftly as they are forced to reprice.
Some key thoughts in case you missed it:
In my opinion, the alts are just feeling this common sense approach. They’re selling off before Bitcoin does, because it hasn’t broken any resistance levels yet. It’s a highly rational play for the riskier assets to follow.
Bitcoin is however challenging the resistance level, while these 2 sell off. If Bitcoin breaks out, then expect the catch up to be swift. If it doesn’t, then the alts will again anticipate new lows from bitcoin as the bearish trend resumes and they’ll continue to fall as they are.
BTC/USD Daily
Well take a look at that beautiful breakout:
BTC/USD Daily Updated
Now where are the alts... I can see that EOS is up 8% on the day and is still nowhere near reaching its similar resistance level.
Bring on the altcoin catchup!
✌🏻.
@forexbrokr | Steemit Blog
Market Analyst and Forex Broker.
Twitter: @forexbrokr
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This alt coins price dip is temporary . If bitcoin price go up and become stable then alts will start growing. This is my analysis about the current market. What you say @forexbrokr
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Looking at the past, when bitcoin pumps in price alternates suffers because money flows from the alternates into bitcoin. And later, money flows from bitcoin into alternates in the alternate season. It's just a cycle
I have to say that, at the moment, I can't really see a strong correlation between Bitcoin and altcoins.
Also, considering the first 10 coins, the one-year correlation is 0.72; the 1-month correlation is 0.39.
This tells a lot about the current market.