Dear Crypto-Enthusiasts,
The Combined Altcoin Market Capitalization today exeeded its previous All Time High, spiking considerable higher.
This is in so far significant in the context of a sharp drop in Bitcoin Percentage of Total Market Capitalization:
We failed to reach the top of the channel which is in itself a sign of weakness. As in the previous Altcoin Market Rallys, the Bitcoin Percentage experienced a failed breakout, followed by a new lower low (indicated by the red entry lines). Just look at January and July 2016 what happened in the Altmarkets when Bitcoin Percentage suddenly started dropping.
The most important fact is that Altcoin Marketcap has risen to over ATH, indicating a new influx of money in both Bitcoin an Altcoins. While the Bitcoin Percentage is dropping this could imply a long term Altcoin trend reversal to the upside, in the best scenario even a rising Altcoin Market at the same time with rising Bitcoin, which would be a double profit move.
Here is the 7 Day Chart of Bitcoin Percentage. This last drop is remarkable and hits right through the red line indicating in the previous chart:
So as per definition an upward trend is defined by Higher Highs, Higher Lows, and Higher Highs. Lets have a look at Daily Charts at Poloniex:
Please open the picture to see it more detailed. In many markets we already got the reversal, a Higher High, Higher Low, Higher High buy setup. So what we got?
- Altcoin Market above ATH
- Sharply dropping Bitcoin Percentage
- Daily Reversal Pattern in Altcoins
Most coins have not yet fulfilled the pattern. Remeber this is still early Entry, and the move will likely escalate upwards in the coming days and weeks. Which must imply that Bitcoin is either going into a deep correction (Potential weekly cup n handle) or a long exhausting and boring trading range around 1000 USD.
Personally I think this is the time for Alts to shine before the next Bitcoin Rally. In case Alts and Bitcoin rise together, we got a win win situation. So I urge you to have a plan. Know whifch coins you want to hold longterm, research, have a plan of action.
Statements are solely personal opinions, no advice.
Trade responsibly and safe.