The State of the Alts – 06-16-22

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.

Another rough week to say the least.  Even Bitcoin Dominance went into free-fall territory when it found resistance on the upper resistance zone on the chart.  That area represents 48.5% – 49% as Bitcoin is trying to reclaim the notorious 50% Dominance title.  Between Saylor, USDT, Celsius and 3AC – you almost didn’t know where to turn or what to listen to.  Once again, unless you are actively shorting the market – there are no trades at the moment.  Unfortunately a lot of traders got sucked into the FOPMC Pump and Dump and are now long in a Bear 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. 

From Friday to Monday Alts lost about 34% on the index.  This is after already dumping 68% from the high put in last May.  We are now down 79% on the index since the last major previous high.  As you will see on the image below of the PAS, everything is red and in nearly every single timeframe.  Alts can continue like this for a while as there is no immediate support areas coming up.  

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.

The Mids took the least amount of damage as a whole but that’s not saying much.  Following the same action as The Altcoin Index, Mids dropped an additional 30% since Friday making their total fall from the recent high a whopping 86%!  There is the same type of horizontal support in the distance coming up but it is still very far away.

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!

ShitPERP is actually down less overall from the last major high in consideration to Alt and Mids.  Shit is down a total of 84% even though it was the biggest loser from last Friday when it added a 34% drop over only a few days.  Once again, the price action is almost identical between the three indexes and all three are a good amount away from their next support levels.

Weekly Movers

A lot of people want to know where the safe trades are… well – you and I both.  The safe trades are shorts upon confirmation that resistance is holding.  There have been many of these opportunities so far.  The markets are red – almost completely dark red.  The trend is clearly down and the news gets worse and worse day after day.  Right now – the best trade – is no trade at all.

The Wrap Up

War, Famine, FOMC, Interest Rate Hikes, 3AC liquidations, Saylor targeted for Bitcoins, Coinbase laying off a 5thj of their workforce…

Does the nightmare stop anytime soon?  Well, Bitcoin just tested its ATH from 2017 – at least, within reason as you glace at the chart spanning a 5-year history.  Does 20K hold?  Does 20K become the 5-6K range of 2018?  Do we see a reversal from here?  The thing about all those questions is that the only indication we and everyone else in the world has at the moment is this: The Trend is Heavily Down and there looks to be more coming.  

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