As you can see, a head and shoulder pattern has formed on the Crypto Total Market Cap that excludes Bitcoin. I'm posting this idea because this is a great place, whether long or short, to trade in terms of risk to reward.
Reasons to short: The price is currently right below the 30 week moving average AND below the neckline of a large head and shoulders pattern. The target from the head and shoulders break would mean an 80% drop to the 1.23 fib exactly. Target is derived by taking the height of the head to the neckline, and then projecting that same amount below the neckline where the break occurs.
Reasons to stay long: The 30 week moving average is curving upwards and there is currently a doji forming on the daily. If the price reclaims the 30 week moving average, we could see a new local high.
Total Market cap with Bitcoin has the same thing. H &S
nagihatoum
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do market cap data follow trade-able patterns? Because the market cap is not traded in itself.
ttrending
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@nagihatoum, They do. I think of it like gravity. If you're shorting alts, you want the general pull of the market to be downwards, and the opposite is also true for longing. Just like day trading stocks, many traders wont take a trade on a stock unless the SPX is moving in favorable direction.
nagihatoum
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@ttrending, funny, i actually tried doing on patterns on market cap data, in theory it worked,
meveme
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Yes indeed
The old resistance on the monthly time frame for TMC excluding alts becomes the new support i.e 56 b
When it bounces from there
Woohoo hooooo
May be September :)))