[TA] When ALT season - ETH close to strong support
ETH/BTC is approaching a very interesting area. It is a confluence of a strong support (april lows) that coincides with the long term trendline retest. The way it reacts here can give us clues about the altseason and how other big altcoins will behave. As mentioned in my previous post we might be heading for a full retrace in altcoins, which implies a serious downside potential (REKT)
The 2-year long ETH trendline has been historically a very good indicator of when alts are cheap (bottom of the channel) and when they are expensive (top of the channel) relative to Bitcoin.
- Bottom of the channel = ALT party about to start
- Top of the channel = beginning of the BTC bull run (BTC stronger than ALTs) or bear market where ALTs always fall faster than BTC
Other alt charts are looking horrible with a huge downside potential. If ETH is to drop another 10% against Bitcoin that would mean 20%-30% for other large and mid cap alts.
For example, ICX has no support to the bottom and no signs of stopping. That does not mean it will retrace all the way down but the downside potential is serious and I would not want to be in a position right now. That being said, if you are already in and your timeline is long term, you might be better of holding instead of selling and looking for a better entry. All signs point to a capitulation quite soon. After that the upside potential will be huge. Whoever is claiming the ALTs are dead now will end up FOMOing in at the top and missing the gains. No need to be emotional but rather evaluate the situation with a clear mind. Many other mid cap ALTs are looking similar e.g. VEN, WAN.
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I am a cryptocurrency trader / investor and want to help new people in the space avoid my mistakes. Let me know which topics you are interested in and I could write an article about it
My posts are only informational and never a financial advice
The shorts are quite overextended on XRP so we might indeed soon have at lease a temporary bounce on XRP & potentially some other alts due to a short squeeze https://twitter.com/LilUziVertcoin/status/1021501665650847745
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