The chart you're seeing here is the market cap of all altcoins combined in BTC (not USD). The formula used is TOTAL2 / BTCUSD . It is my opinion that looking at it in USD just taints one's view, and it's very difficult to draw conclusions from that data. As you can see here, the data is very clean, reliable, and tells a really good story.
In this weekly chart, you can see that the altcoin market established a support in Feb 2017 (lower yellow line), which it has not broken till date. It then established another support during the crypto Christmas of Dec '17 (upper yellow line), which was tested in May '19, and broken in June '19. So we're back to our original support, which has now been tested 3 times, and held.
There are also two resistance lines shown (in blue). Our solid support helped break the first resistance line in Jan '20, and we are at this moment getting squeezed between the solid support and the next resistance line. You'll also notice that the 50 Week (orange line) is forming a confluence with the resistance line overhead, which has historically also acted as a .
Another thing to look at is the Flow Indicator (VFI) at the bottom of the screen, which I believe is indicating a in the . If you want to know why I'm looking at this indicator, see my tutorial linked below.
When I think of all these factors combined: strong support underneath, 50 Week overhead that has been pierced twice recently, and squeeze between , combined with the fact that the support didn't break even during the COVID crash, and the general positive energy in the altcoin market right now, I can't help but feel about the altcoin market. The squeeze seems to be terminating in the third week of July, so I think we will have a decision by then.
The wildcard is the impending potential stock market crash, but seeing as the last crash (Mar '20) actually gave the altcoin market a pump, I'm not worried about that at all. Keep in mind though that I'm talking about prices in BTC , not USD, so if you're trading altcoins in USD then you have to take the price of BTC in USD into account... forewarned is forearmed.
This is my idea on how the altcoin market might behave in the coming weeks. If you find it helpful, please Like the idea. Also would be great to Follow me so you can be notified of my future ideas.
Do you agree or disagree with me? Do you have any feedback? Let me know in the comments.
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