I’m guessing you guys noticed all the blood that was spilling on CoinMarketCap today, well if you haven’t it’s gotten pretty ugly.
In my most recent YouTube video I went over the altcoin market as well as Aeron (ARN). In my ICX & ARN videos I highlighted that while we might have an altcoin run coming up I’m expecting one more drop before lift off. Today was the drop that I was anticipating. If what I’m seeing is correct I’m expecting a slow but steady recovery of the altcoins while BTC trades sideways over the next few weeks, and here’s why.
The picture above is the chart for the Crypto Total Market Cap exlcuding BTC, we’ve been on an alt coin run since mid February and were due for a correction, that’s exactly what we are currently seeing. We’re pulling back to our trend line that has been holding since February and we can also see a bull flag formation setting us up for higher moves.
IF this move does happen I’ve out lined two important targets:
- T1: A place where we’ll see some resistance and possibly a correction on some alts but not all
- T2: The spot where I think the alt run will end.
It’s important to keep in mind that these patterns don’t always have to work and the market can always do what it wants but probability says that the alt coins are currently being setup for big moves. Another important thing to note that if the alts are going to make moves to the upside, Bitcoin needs to trade side ways. If BTC makes any drastic moves up or down the alts will continue to bleed.
We can see on the chart above that on the total crypto market cap (50+% of which is BTC) is trading side ways giving us exactly what we need for an alt coin rally. I don’t believe all the alt coins will rally so it’s important to pick the select few that will, there’s no way of knowing which ones will but there’s a very important event taking place on May 13th. Consensus 2019.
Historically Consensus has been a time where we’ve seen some positive price action, so I’m basing my picks on the coins that will be attending this event. Will my strategy work? Maybe, we’ll have to wait and see.
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