The State of the Alts – 06-02-22

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.

These last few weeks have been some of the worst in a very long time.  The downward pressure is rising, the momentum goes through waves of hard downward pressure and then followed by periods of sideways action.  We can easily see that all three Indices are following the same pattern.  The 20 Daily EMA remains an area of resistance across the board.  Meanwhile – Bitcoin Dominance is on the rise.

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. 

Unfortunately there has been very little to talk about in the last few weeks.  May 12th remains the Black Swan that took out the entire market overnight.  Alts have not been able top recover since.  

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.

Mids are in the same boat as Alts.  The sideways action after the big drop was enough to get a few players Bullish but it was short lived when every token that has a 5-10% move up is met with a 10-15% move down the next day.  

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!

Shitcoins generally feel it the hardest BUT, one good thing about Shitcoins are they may just see some of the action first.  We watch this market closely for outliers to start making moves.  This will tell us that some whales are putting their money back in to some selective coins to try to make some money for a change.  Watch close.

Weekly Movers

The entire market is looking rough.  TRX and XMR may be the only two outliers in the Top 30-50 coins but in this market, they are too risky to trade.  Any long now is a sure bet against Bitcoin and Bitcoin is trading downward. 

The Wrap Up

As we have said before and we will say again now… sometimes the best trade you can take…is no trade at all.  We are still in that situation as we can clearly see the market is indecisive at best.  We are waiting for some signs to show up that show an increase in volume on some speculative assets.  If those assets are able to break early or recent levels than we may have something interesting to share about the market but until then, relax, kick back and learn something new.

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