The State of the Alts – 04-07-22

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.

Consider this last week a retest after the week priors explosive burst of energy.  This is unfortunate but not unexpected.  Alts and Mids are still acting in tandem but Shitcoins have now circled back to be more in Unison with the entire Altcoin Market.

Altcoin Index

Description: 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. 

Altcoins – The Majors – The Big Boys.  Well, they had a rough few days.  Alt had a 2-Week rally that brought the overall index up 33%.  At the time of resistance was exactly the moment we hit the 200 EMA on the Daily Chart.  After 9 days of resistance, Alts failed and dropped almost 8% in a  single day.  All is not lost tho, as it landed directly on the 50 EMA and so far today, Support has been found.  This is significant because it currently looks like a Breakout and Retest of the 50 EMA.

Midcap Index

Description: 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 ad seeking marketing like BAT.

If we wanted to Copy/Paste everything from Alt to Mids – we could.  Mids also had a 33% rally that lasted 14-Days that started under the 20 EMA and traveled up to the 200 EMA.  Mids also spent 9-Days using the 200 EMA as overhead Resistance and ALSO had a large drop off yesterday.  The only difference here is that Mids lost 10% and landed a little sloppy on the 50 EMA.  Once again, Support has been found for now.

Shitcoin Index

Description: 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!

The real Song and Dance here was Shitcoins.  Shitcoins made an extremely impressive move around the same time as Alts and Mids.  Shitcoins moved 55% and blasted right through their 200 EMA.  They found some Horizontal Resistance from previous price action and that is where they stopped for about 6-dyas.  Then, Shitcoins fell three days in a row.  An expensive 18% compared to Mids and Alts.  The landing on the 50 EMA is also suspect as it is very sloppy in comparison.  

Weekly Movers

Depsite the major pullback in the overall market, some coins did travel on and smashed some peaks before pulling back.  We saw coins like GXS, DNT, XEC, even TROY and KEY put in some serious gains all things considered.  

The Shitcoins do certainly get the best when it comes to violent moves upwards but they do also fall the hardest and that is why we very rarely recommend trading such coins. 

What to Watch

Unfortunately with the bigger pullback that was market wide, the best looking coins are some serious Shitcoins with extremely low Volume and Market Caps.  Sometimes the best trade to take is no trade at all.  For now, we watch and we wait to see how the market recovers or fails to recover.

The Wrap Up

And there we have it.  I wish there was more good news to share but being filled with hopium does nothing but cloud ones judgement.  We are seeing good recoveries currently from things like SOL, AVAX and ALGO but nothing solid or convincing enough until there is some more data on the charts.  

For now, sit back, relax and watch the markets for any crazy action that may have some hidden opportunities.

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