The State of the Alts – 09-08-22
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 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.
Things were really starting to heat up this afternoon, so we needed to delay this article as much as possible. We are showing decent moves market-wide on the night of the death of the Queen. Whether the two are related or not makes no difference at all… we are here to look at the overall health of the Alts, which has been pretty bad for the last several months.
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.
SOL and DOT have been doing well over the last 24-hour period. Specifically since the daily candle opened about 5 hours ago. For the last three weeks, ALTPERP has remained bearish while under the 20 and 50 EMAs. Today, however, ALTPERP is currently trading above both EMAs. This is not only from the aggressive move in the market but because both the 20 and the 50 are more or less sideways after there last crossover late last month.
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 L1s like Algorand to ad-seeking marketing like BAT.
MIDS is not in the same zone as ALTS as far as the charts are concerned. MIDS remain under their overhead resistance levels, which are three-fold. The main one we are looking at is the downward sloping trendline from the previous recent highs. The MIDPERP chart is also struggling with its 20 and 50 EMAs, unlike ALTS at the moment. A breakout here would be great for Midcaps, but the story doesn’t stop there. They have a lot of work ahead of them in order o clear the very close resistance.
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 a 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!
SHIT is also enjoying a three-day comeback after putting in three consecutive Lower-Lows. However, just like MIDS, SHIT struggles with its 20 and 50 EMAs. This battle has been raging for three weeks, and the only index that has been able to push above at the moment has been ALTS. SHIT has to contend with horizontal overhead resistance if it does break out, and that overhead resistance is the very same that rejected the last advance. There is a chance it has become weaker, and therefore, SHIT may be able to gain a bit more ground than the previous attempt.
Weekly Movers
ETC and ATOM continue to show more green than any other ALT in the Top 30. As we can see from the lower timeframes, we are seeing some very interesting action across the entire market. In previous months, these have all resulted in false rallies and more downside came after things settled down. This is why watching for breakouts is so important. The second we have some confluence to a potential reversal, it becomes a potential opportunity for some long trades.
The Wrap Up
Everyone loves to see Green days. It’s funny how quickly a Bear turns into a Bull. It only ever takes one candle, sometimes, just a few hours of a candle is enough. We need to see more than just a few hours of trading before any real decisions can be made. A good sign for the entire market would be when these indexes can trade above their 20 and 50 EMAs and the 20 crosses back over the 50. It will take a very long time to call a reversal as there is a ton of resistance in the very near future but we are always on the lookout for some interesting price action.
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