The State of the Alts – 02-02-22

The Global View

Top Left: Bitcoin Dominance – Daily
Top Right: Altcoin Index – Daily
Bottom Left: Midcap Index – Daily
Bottom Right: Shitcoin Index – Daily

Above we can see a snapshot of the entire Crypto market broken down into four very specific charts.  The overall Bitcoin Dominance chart shows you how much of the total market cap belongs to Bitcoin and therefore it also tells you how much of the market belongs to Altcoins.

Each chart is trending down on the Daily and is struggling to find any type of immediate relief from the overhead resistance.  We can see that as a whole, the entire market is suffering and failing to maintain a market cap over $2T as a whole.

Altcoin Index

Each asset in the Altcoin Index is weighted the same.  This gives a good look at a basket of higher profile and higher mcap coins.  We can see we are coming up on support in the $2700 – $2500 range.  This downward trend has peaked at a 57% loss from the top and has been sideways for all of last week.  Resistance comes in the form of moving averages and a downward sloping trendline.  Overall, it’s easy to say that the Blue Chips are bleeding.

Midcap Index

Ahh, the MidCaps.  This is the playground for most traders.  It’s widely excepted that the top tier Crypto have already made most of their explosive moves but that is not the case in the land of the Mids.  The Mids make a wide variety of projects from L1’s like Algorand to add seeking marketing like BAT.

This type of basket has enough variety to get a quick glance at how the more popular midcaps are doing and as we can see, they have recently bounced off of support and smashed their head on the recent 20 EMA resistance.  Previous attempts have failed before but this is the only attempt to break out after finding Support.  As everything else in the market though, these are trending down.

Shitcoin Index

What market in the world can you label a basket of assets and call them SHIT?  Only Crypto baby!  The SHITperp is your view through the window of our beloved Shitcoins.  These represent 50 coins that have relatively low market cap but still have stand out projects.  Coins like MANA, in and of itself is actually a great project with a bright future but its market cap deems it as Shit.  THETA, CHZ, ENJ, HBAR, ZEN, etc.  These projects are actually good projects with good fundamentals, so they skew the balance sheet a bit because these are not exactly the Shitcoins that some other people talk about when they talk about Shitcoins!
On to the chart – nothing to talk about!  It’s all the same as the others.  The Shitcoin Index is similar to the Altcoin Index in the way that it is creeping up on Support but hasn’t really touched down just yet.  

Weekly Movers

There is not a single asset in all of Crypto that is trending strongly upward on the Daily resolution.  Of the 19 coins that show a slight Daily trend, only 5 have lower timeframes that even show some decent trends.  All in all, the massive overview of the Altcoin market is more downward or sideways pressure.

What to Watch

This section will be reserved for interesting coins that we are watching for potential strong moves.  This is the same area we will use to tell you that the market is not exactly “hot” right now and it’s best to relax for a little while, le the market settle out a bit and wait for some clear signs that we have something to look at.

The Wrap Up

When we take a look at the entire market as a whole, it’s easy to say the world is falling apart.  The markets are down across the board.  Bitcoin itself dropped 50% from its recent ATH.  Most Alts have done the same and most will finish their runs being down 80-90%.  This does not mean we won’t see a relief bounce as that is expected.  Bitcoin back to $55K can easily be the last ditch effort for whales to dump their bags by using you as exit liquidity.  Time will tell if we can get a relief going or not but we will certainly know more when we start breaking some of these long term trendlines.

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