Take a look at the Logarithmic scale of ETH, NEO, STRAT and others! ๐๐ Something big is about to happen to alts? ๐ค
It's hard holding altcoins these days, but something big may be about to happen if you believe in technical analysis. While I am no expert in technical analysis by any stretch, I do know of the importance of the Logarithmic scale in analyzing the graphs.
The importance of the Logarithmic chart was first made known to me when I happened upon the Logarithmic scale chart for Bitcoin which has so far almost always explained the tops and the bottoms. Technical analysists like @haejin will often reference the logarithmic scale as well in their predictions.
What's interesting now, however, is to have a look at the Logarithmic scale charts for some of the altcoins compared to Bitcoin. I will be covering a handful here but I am sure you will be able to discover more that follow this pattern if you look at your own portfolio's log scale charts.
Look at how there exists a channel and how the price of ETH has always bounced in between. And more importantly, notice how right now we are at the absolute bottom of the channel!!!
Unless I am sorely mistaken, this is indicative of a move upwards compared to Bitcoin. Imagine what that may mean for your dollars !
There's more..! Let's look at NEO!
And see how this exact same pattern emerges!!
This seems on par with @haejin's predictions which indicate a big move upwards in many altcoins, including these two.
I'm also holding Stratis so I took a look at that as well and came up with this:
Which is pretty surprising to me. My TA skills fail me here, as I am not sure what to make of this, but it feels even more bullish than the other channels just by looking at it since it seems to be widening. Which is surprising, considering the slump Stratis has been in. Maybe some more well versed in TA can fill in what's going on here?
I am tempted every day to sell some alts and hop back onto Bitcoin. But I have to keep reminding myself to stick to the plan and not let my emotions and FOMO dictate my course. I am still betting big on the Return of the Altcoins, and the more I look the more evidence I seem to be finding.
yes, it appears as though altcoins have been ignoring their relative value compared to bitcoin. This trend indicates to me that people are trading altcoins against the value of fiat currency and tether instead of bitcoin. It's an interesting paradigm because you would not expect that to be the case, but I think it is. While Bitcoin steadily increases in value, people aren't really aware that their altcoins are comparatively devaluing, until Bitcoin suddenly pinches a big loaf onto their portfolios and their altcoins suddenly dip. I think its an interesting phenomenon in this market where people almost trade with a split personality, checking the dollar valuation of their portfolios, but often trading with bitcoin for altcoins.
Those charts look super tantalizing though.
I agree it is an interesting phenomenon. I've also noticed other interesting things, like the ETH/USD value dropping sooner than the ETH/BTC value during dips.
With the current bottoms well established I feel like nobody holding alts is willing to sell for these BTC prices. If they were they would have done so long ago.. so this is why the BTC value seems more stubborn than the USD value. Those who are in it for fiat see the price swings and cash in and out, but those who entered through BTC are holding firm. I think this is going to cause alts to go up
Agreed. I have been watching the alts fall in relative value (to bitcoin) for some time, waiting for a good entry point. Then i convince myself that vs Fiat its still a no brainer, but I generally have to buy bitcoin to trade with alts and then I cant part with the Bitcoin!
Have you looked into Coinbase recently ? You can buy Ether or Litecoin with USD without purchasing Bitcoin. It takes awhile for the transaction to be fully settled but it is worth the wait.
True. The other advantage is the fees are much lower with those when you transfer to an exchange. However there are fewer trading pairs available with the other alts.
Logarithmic scale and other forms of technical analysis are useful. It's pretty much all you got in the crypto world since there isn't much for fundamentals to go off of.
And strangely enough, a lot of these trend lines and TA analysis actually end up being self fulfilling prophecies too. But as long as we can benefit, I guess it's a good thing
The Alts are where millionaires are made. I hope you are right.
Me too! I could use being a millionaire!!
I am overweight Ether and Underweight Bitcoin so i better wait for the run to the upside before i swap again. What charting program did you get the images from?
I'm the same, I've got more in ETH than in BTC, so I could use this too! :)
I got the charts straight out of Bittrex. Which is probably one of the worst places for charts, but I'm lazy!
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Yes we should me more aware of strong connections of altcoins with Bitcoin price. Because of that I firstly analyse Bitcoin and altcoins second.
Here is an examples #18, #19.