The State of the Alts

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 continued week of downward pressure as seen from the four charts above.  We had an overly nasty weekend right after our last State of the Alts.  Thursday was not too bad but Friday picked up where Thursday left off and Saturday brought the rest of the blood.  This was market wide as everything took a hit.  

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. 

As we mentioned above, last weekend was especially brutal.  As what generally happens, the Majors took less of a beating than the Mids and the Mids took less of a beating than the Shitcoins.  The Majors dropped 10% over the two-day period.  They were spared the beginning dump on Thursday.  The Sunday pump lead to a test of the 20 EMA which found swift resistance earlier today and closed with a 8% loss.  All things considered, we are currently still above the recent low from last weekend.

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 you got bad news from the Majors, don’t expect the Mids to brighten up your day.  Instead of dropping 10% like the Majors, the Mids took a 12.5% drop from last Thursday to Saturday.  Unlike the Majors in regards to the test of the 20 EMA, the Mids came up short and took resistance close to the 20 without interacting with it.  Another striking difference from the Majors is the fact that the Mids did indeed break the Weekend low and they continue to trend downward as we speak.  

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!

Love them or hate them, Shitcoins always take the brunt of a sell off.  Here we can see a 20% drop in comparison to the 12.5 from Mids and the 10% from Majors.  Shitcoins were even further from their respective 20 EMA than the Mids were – and yet, nothing but resistance.  In fact, yesterdays drop was 10%.  Now, even more interesting is the fact that the Shitcoins did not sweep the weekend low like the Mids did.  However, the drop on the weekend was breaking the low that all three indexes set on the same day – 02-24-22.  Shitcoins are the only one to breach their February low and they still have a decent way to go before they see support.

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.

Above is a fairly decent snapshot of where we are in consideration to the Altcoin Market.  You’ll see the Majors as well as some Mids and Shits.  Everything looks terrible accept for TRON of all things.  Even then, taking longs in this particular market can go against you in a heartbeat.  This is an ugly market at the moment, let there be no mistake about that.

The Wrap Up

Just like last week and the week before that we are seeing coin after coin get destroyed.  We did see a few promising ones not too long ago but even those are fading into the distance as the void of the Bear Market engulfs everything in its path.

The Traditional market is no better.  Today was the worst day in Traditionals in over 20 years.   FOMC meetings, geopolitical events, anger in the streets over anything people want to yell about, an economy on edge, Earning Reports that are the last things from spectacular, etc, etc, etc.  

In trading, we ride the cycles, we ride the trends and we sit back and learn, test strategies or develop when there are no good trades to make.  We are at the moment of no good trades to make.  

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