Hey guys,
So we’re all frothing on the fact that Bitcoin has ripped to resistance, at least with the bullish momentum and price action to back up a possible break this time.
But at the same time I’m seeing a lot of Bitcoin positivity on my stream, I’m also seeing a lot of nervousness towards alts. They’re lagging and especially for those of us here who are invested in STEEM, it’s natural.
So today I just wanted to add my 2 cents on what I’m thinking. First up, a look at where Bitcoin is sitting:
BTC/USD Daily
As we’ve spoken about already, Bitcoin is pushing resistance which would signal a new higher high for the first time in what feels like LONG time.
But! Yes there’s always a but, and this is a big one.
Within this downtrend, we’ve been here before. A few times actually. We get excited when absolutely zero technical damage has been done to the bearish trend.
And again, we’re excited but nothing has been done to change the bearish trend.
In my opinion, the alts are just feeling this common sense approach. They’re selling off before Bitcoin does, because it hasn’t broken any resistance levels yet. It’s a highly rational play for the riskier assets to follow.
Take a look a time EOS and STEEM for example:
EOS/USD Daily
STEEM/USD Daily
Being the 2 alts that I follow the closest, you can see that they have set up the same potential bottoming pattern.
Bitcoin is however challenging the resistance level, while these 2 sell off. If Bitcoin breaks out, then expect the catch up to be swift. If it doesn’t, then the alts will again anticipate new lows from bitcoin as the bearish trend resumes and they’ll continue to fall as they are.
Rational?
✌🏻.
| Steemit Blog
Market Analyst and Forex Broker.
Twitter: @forexbrokr
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