This post is a sister post to my recent Total2 post which seems to be almost mindlessly bullish. That idea, combined with the bearishness I see in BTC.D, suggest that Alts are going to be outperforming to the upside in a big way.
The first key structure is the black flagpole which is shown on the trendbased fib extension in black. The TA is pretty simple. Most flagpoles fall short and 1.618 (in standard, not log scale) is down by 28% dominance. Secondly we have the blue descending triangle that we can watch out for. Support was already found twice at the 40% level and it seems that the W pattern that the bulls may have been looking out for isn't going to materialize just yet. So BTC.D is in this in-between pattern with regards to bullishness.
So what do I rely on? The common trading adage "The trend is your friend until the end. We came into ths consolidation pattern bearishly so we have a increased chance of leaving it bearishly. The triangle full performance target would be at 30%, close to our flagpole target. Midway between the triangle support and the 30 level is the 1.618 extension level of the triangle. I would not be surprised at all to see another bear flag in there.
Finally there is some hidden bearish divergence on the MACD histogram and the MACD itself is below zero. Hidden bearish divergence increases the chance that MACD cross will be bearishly sustained so we could see quite the drop. Obviously this bearish divergence isn't as pronounced as the divergence observed in late 2017/early 2018 but it is there still.
@Cryptonetwork1, The only cump and handle I see is an inverse cup and handle as shown:
If you are refering to the structure in the chart below then I would say no... cup and handles are uptrend continuation patterns and this would have it in the place of a reversal.
Further that, this structure below doesn't have the right symmetry to be a Adam and eve or a Even and eve bottom
@Cryptonetwork1, Not a proper cup as cups are bullish continuations and not bullish reversals. To me, the cleanest formation I see is the descending triangle. That is the larger formation and it bets on continuation as well so it is the better bet. Now, just because BTC.D goes down does not mean that BTC goes down, it just means alts as a whole outperform.
Cryptonetwork1
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@This_Guhy, it means that if I put some part of my BTC into ALTS I will make probably more BTC, true?
This_Guhy
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@Cryptonetwork1, If are like me and are a leverage trading degenerate you can put some trades on an alt/btc and not even technically sell BTC, you are just using it as collateral and you get paid in BTC. Of course, if the trade goes against you then you have to sell some btc.
This_Guhy
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@Cryptonetwork1, I am not a financial advisor nor a CMT but but I can tell you I see a lots of strength in ThetaBTC and I personally have a trade on ThetaUSD based on the Thetabtc chart.