Regularly, I will be sharing something a bit different moving forward. I have a single chart of the ten major cryptos based on the volume . This volume determines the weight of each crypto in my analysis. This allows us to have a high-level overview of the market’s major movers in one go.

If you want to try it out yourself, enter the following formula under symbol search.
BTCUSD*0.32 + ETHUSD*0.284 + SOLUSD*0.108 + ADAUSD*0.066 + AVAXUSD*0.065 + DOGEUSD*0.048 + SHIBUSD*0.039 + ATOMUSD*0.027 + JASMYUSD*0.023 + WLUNAUSD*0.021

Yesterday I posted the Minor Cryptos analysis. I also shared a bit more about the reasons behind volume for those curious.

The recent market top that we saw between March 28th to April 4th consists of somewhat high volume , but on a relativistic basis, the volume is low, and we didn’t see a volume spike at the top. This tells me that the drop we are experiencing is due to exhaustion and not due to a fundamental change. The bullish strength remains intact. There was no extreme fear that caused a high level of selling to overtake the bullish momentum.

One key thing to note is the two areas that I’ve highlighted in yellow. Before mid-March, we were in a low volume area, and as the price climbed up, the volume increased. Then we are left with the past month or so with sustained high volume . That means we have increased participation in the market and that participation in the major cryptos didn’t decrease just because the price dropped. There was sustained buying and selling that took place. Based on this, we can expect more significant price swings and faster price recovery. 

On April 14th, we saw a high volume down spike, which is a good indicator that a reversal most likely is on its way. We will most likely see a relatively higher volume spike or two if this indeed is the bottom this week. This will further confirm the bullish bias and that the previous top of the end of March will be broken. Seeing the high volume spike means extreme greed is setting in.

Here is a quick screenshot from my trading system. It’s screaming bullish at this time because it detected high buying interest and bullish momentum divergence in the last couple of waves.
COMBINED1 are the major cryptos. The horizontal color gradient area you see is the overall bullish / bearish momentum divergence. Lime color means bullish momentum. 

I measure both the momentum and the tilt of the market. BTC , for example, is still tilted bearish . However, that tilt was tested last week, and I’m seeing the tilt changing with very little price movement. I feel strongly that the bottom on BTC is here. I don’t recommend anyone going short at this time. However, based on tilt positioning, BTC is directionless, and we can expect a sideways market.

Please DM me if you are interested in joining a group chat right here in TradingView. The general crypto chat is very noisy, so I want to start something just for us more serious folks. It’s boring trading alone, and it’s always way more fun making money together. I need about ten people to start the chat, so TradingView will keep it open. 

Drop a comment with a question, criticism, or feedback. I would love to hear from you.

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