BTC Correction & Impact to ALT's : Cautionary MACRO Analysis
34K Level was the upper limit of one of the BTC logarithmic rainbow channels.
BTC is historically overbought. 14W RSI over 90 and BTC (compared to 2017 levels) is significantly higher than its 20W SMA . The MA Overextension indicator emphasizes this fact.
BTC Dominance needs to bleed, for this to happen either:
1) BTC will go sideways, money flow into ALT's
2) BTC will face overcorrection, dominance will jump in short term but later alt-coins find their ground.
With such a sharp parabolic move, the feasibility of sideways movement diminishes.
Ultimate message is to remain cautious. While ALT's might jump in the short term, they generally perform better when BTC is moving sideways. If BTC would face a correction to its 20D MA (27-25k levels), the volatility would, in short term, kill the ALT market and bounce BTC dominance back up.
A 20% correction in BTC would mean a 40% correction or worse in ALT's.
Keeping a USDT stash nearby to accumulate ALT's when such correction occurs might be a wise idea. We WILL enter an ALT market, the question remains, however, whether BTC will face a correction to get there.
BTC is historically overbought. 14W RSI over 90 and BTC (compared to 2017 levels) is significantly higher than its 20W SMA . The MA Overextension indicator emphasizes this fact.
BTC Dominance needs to bleed, for this to happen either:
1) BTC will go sideways, money flow into ALT's
2) BTC will face overcorrection, dominance will jump in short term but later alt-coins find their ground.
With such a sharp parabolic move, the feasibility of sideways movement diminishes.
Ultimate message is to remain cautious. While ALT's might jump in the short term, they generally perform better when BTC is moving sideways. If BTC would face a correction to its 20D MA (27-25k levels), the volatility would, in short term, kill the ALT market and bounce BTC dominance back up.
A 20% correction in BTC would mean a 40% correction or worse in ALT's.
Keeping a USDT stash nearby to accumulate ALT's when such correction occurs might be a wise idea. We WILL enter an ALT market, the question remains, however, whether BTC will face a correction to get there.
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