The State of the Alts – 07-07-22

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.

This Thursday we needed to wait for the Daily Candle to close just to make sure we were really seeing what what were seeing in the market.  Now, before anyone gets too excited, remember that we are in a very large downtrend and we have not seen major shifts in momentum.  That being said, we actually have some alts that have been going against the mold and providing some good price action.  Even further than that, we are seeing low timeframe trends starting to form.  We see a lot of green from the M5 to the H1 and that is a very big deal.

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. 

After three days of failed attempts to break over the 20 EMA, the ALTPERP has finally done just that.  A few minutes ago marked the first Daily close over the 20 EMA since May.  However, staying above the 20 EMA is what we are really after but the point that we have broken through local resistance is a great place to start.  

ETH is up 20% from last week and BNB is up 14% for the same time period.  These are significant gains considering what the last few months have looked like.  Trends begin when price can make consistent movements in one direction while showing strength to one side and weakness to the other.  

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.

Much like their big brother ALTPERP, the Mids have spent the prior three days trying to get a push above the 20 EMA on a Daily close and yes, a few minutes ago, they got just that.  The Mids were able to land this same goal a few week ago but that attempt did not last and the market came barreling back down.  The Mids are hoping this time is more promising as they are in tandem with the bigger Alts in the market.

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!

Last but certainly not least, our SHITCOINS!  Thee are generally the firt to tart moving up and not the higher market cap alt but what can you do?  The whole market i beginning thi mini rally and the Shitcoins are not one set of coins to be left behind.  There are a few that fall under this category that we will take a closer look at in just a minute.  Just remember that Shitcoins dump hard but they also pump just as hard when the correct market conditions apply. 

Weekly Movers

There are a lot of Alts in the market that are finding Support and making their first go at resistance ina  long time.   Some are breaking through while others remain constrained by the overhead resistance in front of them.

All things considered, we can either see a fake out market wide and this move is nothing more than a distraction or a further rally up to local levels somewhere near the 50% of the major drop.

What to Watch

BURGER/USDT:

BURGER is showing strong price action through local resistance.  A little history on BURGER that most will not bother to look at… BURGER reached a maximum loss from its ATH at 99.03%.  Now, we are not saying that we have hit the bottom but if we have, that is pretty amazing.  BURGER has the opportunity to make some really serious moves and they are just retesting some fairly conservative levels.  Trades ranging from 100-600% could be on the table.

STORJ/USDT:

STORJ is another ALT worthy of a mention at the moment.  STORJ is facing a ton of resistance in the near future but the good part about that is that there are some fairly simple trade setups in the meantime.  With the break of the local resistance and a fairly clear area for resistance, we can see a move to $1.41 that would result in a 126% move from the recent Support Level.  STORJ was recently down 91.41% from its recent ATH.

The Wrap Up

There are few things worse than being the voice of reason while people start crawling out from under their rocks but It Must Be Said – We are very much in a Bear Market.  Does this mean you can never trade?  No, of course not but it means that the overall trend is still down and therefore caution must be exercised when taking any long positions.  For now, try to stick with assets that have lots of liquidity and a decent Market Cap.

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