BTC/USD analysis based on Alts/BTC behavior
Don't mind the chart, my analysis is not based on this chart. it's more of an observation of the overall market. I'm not a very visual person so I explain my view by words instead of charts:
I’ve been leaning to overall bearish and the reason is that the satoshi value of most alts is about to break its formation to the upside. They have all formed a similar formation throughout these past weeks and their charts show strong indication of an upcoming breakout to the upside. Most of them had a big move to the upside around May 14 which formed the first leg of their formation. Then they spent weeks doing sideways action in a defined support/resistance range. some of them are breaking out of this formation already, like BNB/BTC and LTC/BTC.
We know that alts satoshi value dumps when btc is going to the upside. And we know they also dump when btc is dumping as well. When btc is playing in a sup/res range, alts satoshi value increases, but slightly. Unless...
if alts/btc is to break the formation, it needs another powerful leg, like their first leg. For it to get another leg, mathematically, different scenarios could be imagined. Some examples:
1. Btc increases but alts/usd increases more aggressively, enough to make alts/btc increase enough to break the formation. For example, the target for eth/btc breakout is around 0.035. If BTC were to move to 8700, ETH/USD should move up to 304$ for its satoshi value to be set at 0.035. that's about an 18% move to the upside for eth/usd. although... I can't deny the fact that an 18% move is not that unusual in crypto market.
2. Btc stalls in this range for more days to come while Alts/usd takes turn in increasing (they have been taking turn already), causing alts/btc to each pump as well in their turn. Eventually btc breaks its formation, up or down.
3. BTC keeps stalling, but not just in this range. It’ll stall in 7600-7200 for days to come. Resulting in prolonged days of sideways action. This will make the mass bored and crazy and drive them to alts. So alts/usd keeps kinda increasing while btc is technically in a downfall. Which would make alts/btc break their formation to the upside with powerful legs.
(Sidenote: I think alts/btc charts are divided in categories based on their patterns. For example, some altcoins look like BNB/BTC chart pattern, Some look like Eth/btc, etc. I haven’t put enough time in fully observing this, but if it actually is like that, could be that alts with similar patterns pump together)
I’ve been leaning to overall bearish and the reason is that the satoshi value of most alts is about to break its formation to the upside. They have all formed a similar formation throughout these past weeks and their charts show strong indication of an upcoming breakout to the upside. Most of them had a big move to the upside around May 14 which formed the first leg of their formation. Then they spent weeks doing sideways action in a defined support/resistance range. some of them are breaking out of this formation already, like BNB/BTC and LTC/BTC.
We know that alts satoshi value dumps when btc is going to the upside. And we know they also dump when btc is dumping as well. When btc is playing in a sup/res range, alts satoshi value increases, but slightly. Unless...
if alts/btc is to break the formation, it needs another powerful leg, like their first leg. For it to get another leg, mathematically, different scenarios could be imagined. Some examples:
1. Btc increases but alts/usd increases more aggressively, enough to make alts/btc increase enough to break the formation. For example, the target for eth/btc breakout is around 0.035. If BTC were to move to 8700, ETH/USD should move up to 304$ for its satoshi value to be set at 0.035. that's about an 18% move to the upside for eth/usd. although... I can't deny the fact that an 18% move is not that unusual in crypto market.
2. Btc stalls in this range for more days to come while Alts/usd takes turn in increasing (they have been taking turn already), causing alts/btc to each pump as well in their turn. Eventually btc breaks its formation, up or down.
3. BTC keeps stalling, but not just in this range. It’ll stall in 7600-7200 for days to come. Resulting in prolonged days of sideways action. This will make the mass bored and crazy and drive them to alts. So alts/usd keeps kinda increasing while btc is technically in a downfall. Which would make alts/btc break their formation to the upside with powerful legs.
(Sidenote: I think alts/btc charts are divided in categories based on their patterns. For example, some altcoins look like BNB/BTC chart pattern, Some look like Eth/btc, etc. I haven’t put enough time in fully observing this, but if it actually is like that, could be that alts with similar patterns pump together)