Bitcoin & Altcoin Correlation ( + Moon Phases )
Updated
Bitcoin has broken its downtrend line after 16 days of consolidation and started an impulsive trend rise right at the start of the full moon mark & a significant drop in BTC dominance to . Although this might have been a fakeout, the volume that entered has to be considered important in case you are trading altcoins. The primary goal of cryptocurrency trading is to accumulate more bitcoin, at least for me, since bitcoin is the king and will be until it doesn't. In that case, we move to another coin and accumulate it.
Bitcoin has been looking complacent on 27th of December when it hit 0.618 Fibonacci retracement of the move down, as expected, but is going through resistance at the moment.
The main question to ask now is how will altcoins trade versus bitcoin? We have seen time over time the inverse relationship between altcoins and bitcoin, and that will hardly change, no matter how much would we like it. So the trading plan for January is to trade altcoins that have the highest momentum and current bullish market sentiment, with tight stop loss & prudent take profit zones. That way we are protected from bitcoin impulsive rises in case they occur but can still accumulate more bitcoin when it is consolidating. In case the downtrend (RED) line proves to be support now, I expect to see bitcoin ATH during the month of January. Also I expect to see the rise at least until March, or even later during this year.
I wish you luck in accumulating more coins of your preference because this year is the year of cryptocurrencies.
Bitcoin has been looking complacent on 27th of December when it hit 0.618 Fibonacci retracement of the move down, as expected, but is going through resistance at the moment.
The main question to ask now is how will altcoins trade versus bitcoin? We have seen time over time the inverse relationship between altcoins and bitcoin, and that will hardly change, no matter how much would we like it. So the trading plan for January is to trade altcoins that have the highest momentum and current bullish market sentiment, with tight stop loss & prudent take profit zones. That way we are protected from bitcoin impulsive rises in case they occur but can still accumulate more bitcoin when it is consolidating. In case the downtrend (RED) line proves to be support now, I expect to see bitcoin ATH during the month of January. Also I expect to see the rise at least until March, or even later during this year.
I wish you luck in accumulating more coins of your preference because this year is the year of cryptocurrencies.
Note
bitcoin breaking out and stopping at 0.618 fibonacci back up. should consolidate on the 4 hour cloud and go up in a few days.Note
could not bust through the 17k resistance and is moving sideways. it is actually finding support on the downtrend line it broke out from on 02.01.2018. Bitcoin is currently in the no trade zone.Note
While still in the path of learning the method of Elliot Waves, the classic mistake was done. I zoomed in a bit too much (2-4h timeframe) and did not see the big picture, which is currently playing out as an ABC retracement , on a large time frame. If the previous lows do not hold, we can see a move down to 7.5k, where we would get the perfect 0.618 fibonacci retracement from the whole move starting in late 2016. This is showing itself to be a healthy retracement still, but we must take into consideration the CME Futures which showed to be a way for the Wall Street brokers to manipulate the price in the direction they need in order to get the futures paid out. For them it is a win-win situation, so from now I will take much caution when charting BTC, since many different players are starting to have interest in this game. In case you would like to see the CME futures chart - enter BTCF2018
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