Throughout 2019, and even during the 2018 bear market, the promise and allure of an “alt season” have kept crypto traders buying each dip in the altcoin market, meanwhile, Bitcoin and its parabolic rally have only decimated the alternative crypto asset category further through growing BTC dominance.
The tides have started to turn and Bitcoin dominance has begun to reverse. As altcoins bounce strongly and give hope that the bottom is in, one crypto analyst warns that one simple signal must occur before any crypto investors should consider that an “alt season” has begun.
Crypto Analyst: Zero Reason to Be Bullish on Alts Until Resistance Turns Support
Crypto trading and investing can be complicated and overwhelming. Many charts shared across crypto Twitter will include dozens of meme lines, indicators galore, and so much data its nearly impossible to understand what’s going on. But oftentimes the simplest method is the most effective.
One prominent crypto trader says that it’s as easy as that when it comes to altcoins, and simply watching for resistances to be broken and “flipped support” and waiting until then to buy and hold out any hope for an alt season to commence.
Alt szn so strong that the first bearish throwback has been respected.
Zero reason to be bullish on alts unless throwbacks start getting broken and flipped support. pic.twitter.com/emSirLWthv
— Nick Cote (@mBTCPizpie) August 12, 2019
The trader further says that the recent rally across the altcoin market “respected” the first “bearish throwback.” The trader’s LTC/BTC chart shows a bearish order block that is now acting as resistance. According to the analyst’s theory, Litecoin would need to flip this order block into support, by breaking above it and falling back to it to confirm it as support before rallying higher.
Once a few of these important bearish levels have been reclaimed, only then should investors consider that the altcoin market death spiral may be over.
What If Alt Season Never Returns?
Sentiment around the altcoin market has been at extreme lows, suggesting that the slice of the digital asset market that isn’t Bitcoin has been capitulating. This is typically a buy signal, and even some of the most prominent investors of ever suggest “buying when there is blood in the streets.” However, at the mere sight of a bounce, the entire crypto market has once again turned bullish and is clamoring about an alt season.
Related Reading | Crypto Analyst: Potential 50% Drop Could Put Altcoins on Flash Sale
While even a broken clock is right once a day, investors would be wise not to jump the gun and assume the altcoin carnage is over. Buying here could provide the greatest financial upside possible for years to come, but additional decline here could be disastrous for the overall crypto market.
Stop it right now pic.twitter.com/G3KtHOpMBz
— Moon Overlord (@MoonOverlord) August 10, 2019
Analysts like the one above are also playing it cautious, with others warning another 50% drop could be in the cards, and others pointing out that many won’t ever reach their all-time highs again, even if Bitcoin were to reach $100,000 per BTC.
Published at Mon, 12 Aug 2019 19:00:18 +0000