Read this article before buying cryptocurrencies.
The use of indexes is very common among stock’s traders and investors as most of the stocks rise and fall correlatively. Similar conditions exist in the cryptocurrency market too!
Most of the times, just about 100 days before BTC halving, prone-to-growth and fundamentally valuable cryptocurrencies begin to grow rapidly.
For instance FTM, ADA, SOL, ETH and so many other cryptocurrencies you must know better than me started to grow before previous halving of Bitcoin, while they are not technically related to BTC at all!
Bitcoin is a tradable assess and may have the possibility to be used as a money transfer tool, but it’s able to play role as an index for other cryptocurrencies which are able to be much profitable than BTC itself. For example FTM rise more than 12000% in 2021, simultaneously BTC grow up only for 65%!
There are so many traders who take a look to BTC chart before buying a crypto but change of BTC dominance is the best witness that BTC is not the best Index.
May be we could use Crypto total market cap as an alternative.
In analysis of TOTAL (Crypto total market cap) an almost strong resistance could be seen in around +30 or +40 percent from current market cap!
Price reacted to the line for 2 times recently and the main strong support is so far away from current situation. It’s a bad news!
The other bad news is that there are about 817 days to the next halving. Most of the times market cap decreases in this period since the supply of bitcoins is high during this time and the bulls will face a difficult battle to win and, as I mentioned earlier, it affects other cryptocurrencies as well.
But the good news is the great resistance can be seen in 0 point of my self-made indicator, Middle Line Confirmations (MLC), which I will publish soon, that is a good sign that the possible correction will not be severe. I think it’s a good time to buy good crypto currencies regarding their Reward to Risk ratio and fundamental analysis which differ from one to another since we hopefully will not be in a long-term correction.
But if we lose the support of 1.581T there may be severe correction that will last about 700 days from now. If that happen the green support line will be broken and we may touch the lower white dotted line between 500B to 700B, since this line is parallel in logarithmic scale with the red resistance line.
Analysis of MLC (middle line confirmations):
April 2019, 0 line of indicator was broken sharply and it led to a 122% grow.
August 2019, line 0 break was associated with resistance and market cap moved just for 35% down!
The next hard break was accompanied by a short move, this time 0 line broken up which it led to 22% growth!
April 2020,0 line broken with ease again and the result is another big move. This time more than 1000%!
Next time again a break with resistance could be seen and the correction limited to 54%
Next break which is an easy one do again end to an almost big move.
If there will be a broken 0 line again here it is perfectly accompanied with great resistance, so there might be powerful buyers who believe these prices of cryptocurrencies are discounts.
Do your own research before buying any assess.
Don’t forget of money management and risk management.
Don’t forget that cryptocurrencies are so volatile.
Regards, Ali
The use of indexes is very common among stock’s traders and investors as most of the stocks rise and fall correlatively. Similar conditions exist in the cryptocurrency market too!
Most of the times, just about 100 days before BTC halving, prone-to-growth and fundamentally valuable cryptocurrencies begin to grow rapidly.
For instance FTM, ADA, SOL, ETH and so many other cryptocurrencies you must know better than me started to grow before previous halving of Bitcoin, while they are not technically related to BTC at all!
Bitcoin is a tradable assess and may have the possibility to be used as a money transfer tool, but it’s able to play role as an index for other cryptocurrencies which are able to be much profitable than BTC itself. For example FTM rise more than 12000% in 2021, simultaneously BTC grow up only for 65%!
There are so many traders who take a look to BTC chart before buying a crypto but change of BTC dominance is the best witness that BTC is not the best Index.
May be we could use Crypto total market cap as an alternative.
In analysis of TOTAL (Crypto total market cap) an almost strong resistance could be seen in around +30 or +40 percent from current market cap!
Price reacted to the line for 2 times recently and the main strong support is so far away from current situation. It’s a bad news!
The other bad news is that there are about 817 days to the next halving. Most of the times market cap decreases in this period since the supply of bitcoins is high during this time and the bulls will face a difficult battle to win and, as I mentioned earlier, it affects other cryptocurrencies as well.
But the good news is the great resistance can be seen in 0 point of my self-made indicator, Middle Line Confirmations (MLC), which I will publish soon, that is a good sign that the possible correction will not be severe. I think it’s a good time to buy good crypto currencies regarding their Reward to Risk ratio and fundamental analysis which differ from one to another since we hopefully will not be in a long-term correction.
But if we lose the support of 1.581T there may be severe correction that will last about 700 days from now. If that happen the green support line will be broken and we may touch the lower white dotted line between 500B to 700B, since this line is parallel in logarithmic scale with the red resistance line.
Analysis of MLC (middle line confirmations):
April 2019, 0 line of indicator was broken sharply and it led to a 122% grow.
August 2019, line 0 break was associated with resistance and market cap moved just for 35% down!
The next hard break was accompanied by a short move, this time 0 line broken up which it led to 22% growth!
April 2020,0 line broken with ease again and the result is another big move. This time more than 1000%!
Next time again a break with resistance could be seen and the correction limited to 54%
Next break which is an easy one do again end to an almost big move.
If there will be a broken 0 line again here it is perfectly accompanied with great resistance, so there might be powerful buyers who believe these prices of cryptocurrencies are discounts.
Do your own research before buying any assess.
Don’t forget of money management and risk management.
Don’t forget that cryptocurrencies are so volatile.
Regards, Ali