Loom Network is bouncing from very strong support, marking a triple bottom. But, will LOOMBTC be able to move up from here or will it go lower?
Feel free to hit like to find out, and let's continue with this chart analysis.
Before we get started, let me clarify a small detail. We call altcoins all the alts that are available for trading on Binance, Bittrex, Poloniex, HitBTC, Huobi, KuCoin, and all other exchanges with the exception of CoinMakertCap Top10. These Top 10 we call by name, like Bitcoin, Ethereum, Ripple, etc., rather than naming them just "altcoins".
There are thousands of cryptocurrency projects that fall in the category of altcoins and most of these altcoins have very low market cap. compared to the Top 10. So these move differently, so we label them in different categories.
So when you see me mentioning "Altcoins", I am talking about all these medium and small-sized cryptocurrency/altcoins projects, such as the ones I write about in this channel.
Now, getting back to Loom Network (LOOMBTC) and this chart analysis...
Will it move up from here?
What about the rest of the Binance altcoins that are bouncing on support?
The market is waiting to see how Bitcoin (BTCUSD) will move, will it continue up or fall.
The conventional mindset is set on the fact that the altcoins most drop if Bitcoin drops, but this doesn't have to be the case.
Altcoins drop when Bitcoin drops if the market is in a full bear cycle, but in a bull cycle, the altcoins rise when Bitcoin drops; why is that?
As the market enters a bull cycle and the altcoins have huge potential for moving up, when money leaves Bitcoin it flows to the altcoins.
So if we are to enter, or entering, a bull cycle, we can expect to see something different this time around.
This time around we might see altcoins make a big jump when/if Bitcoin drops, if the market is to turn bullish long term (bull market).
If we are going to see a continuation of the bear market, new lows for Bitcoin and altcoins as well, then you can expect the altcoins to drop if Bitcoin also fails.
What's your take on this perspective?
Share your thoughts in the comments section below.
Thanks a lot for reading.
This is Alan Masters.
Namaste.
Comment
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LOOMBTC has completed its correction, high probabilities of a bullish wave now to form.
Finding it difficult to tell as of right now. Let's see what May brings.
That BTC pump in early April ran quite few of my stops on alt trades.
Then things calmed down again toward the end of the month on the BTC chart, and alts looked good again while BTC consolidated.
BTC's mini upside break on 22/23 April kinda killed momentum on a few little alt trades I'd opened mid-late April.
Then the Tether FUD mini dump smashed them down harder and ran a load of my stops again.
So now we see ourselves back at bear market lows for a whole load of alts I've been tracking. Some are bouncing a bit (AGI, DGD, AION for example) most are moving sideways.
Think I see three scenarios:
1. BTC short squeeze, alts get smashed as stops are run and things rotate back into BTC
2. One final shakeout of this market cycle and then a V shape back up to clear the 200MA on the BTC chart and start a new cycle (money gets shaken out, don't think most believe we've entered a new bull market yet, psychology feels more like the sucker rally phase), alts get smashed
3. The scenario you describe above, we're in a new cycle and alts hold up against a BTC drop.
All things considered, I see two ways out of three that alts get smashed in the coming few weeks. So, I'm picking my battles very carefully, keeping stops very tight and going for quick scalps right now.
I'm probably wrong though, and getting my strategy wrong.
That BTC pump in early April ran quite few of my stops on alt trades.
Then things calmed down again toward the end of the month on the BTC chart, and alts looked good again while BTC consolidated.
BTC's mini upside break on 22/23 April kinda killed momentum on a few little alt trades I'd opened mid-late April.
Then the Tether FUD mini dump smashed them down harder and ran a load of my stops again.
So now we see ourselves back at bear market lows for a whole load of alts I've been tracking. Some are bouncing a bit (AGI, DGD, AION for example) most are moving sideways.
Think I see three scenarios:
1. BTC short squeeze, alts get smashed as stops are run and things rotate back into BTC
2. One final shakeout of this market cycle and then a V shape back up to clear the 200MA on the BTC chart and start a new cycle (money gets shaken out, don't think most believe we've entered a new bull market yet, psychology feels more like the sucker rally phase), alts get smashed
3. The scenario you describe above, we're in a new cycle and alts hold up against a BTC drop.
All things considered, I see two ways out of three that alts get smashed in the coming few weeks. So, I'm picking my battles very carefully, keeping stops very tight and going for quick scalps right now.
I'm probably wrong though, and getting my strategy wrong.
Namaste.