ETH Leads the Alts
More pullback for #altcoins? Here's what you should be watching.
Traders,
Sorry for the infrequent posts lately. I have been feeling under the weather. But TBH, it was good timing. As stated in my previous post, I expected alts to draw back 10-15% or more pending indications. So far, I think it's safe to say we've had our 10-15% pullback. Now, the question remains, will that steep ascending TL I talked about seeing on all of the altcoin charts hold. For ETH (as well as some other alts) it has not. And if Eth leads the alts, which it does, we can still expect more pullback. But how much?
There are a couple of things to look at here on this chart:
#1 Will our support at 2120 hold?
If that 50 day SMA comes up to help, it just might. However, to gain a broader context and therefore, a more accurate current scenario, it helps to visit some other charts to understand what's going on here.
First, let's take a look at Tether Dominance:
You will observe most importantly that Tether dom has broken an import TL on the RSI to the upside. This most likely means that traders are currently selling mostly BTC and also large cap alts but are NOT going back into mid to low-cap alts. They are staying in stable and will probably continue to do so for a short time.
Total2 is also giving us possible clues here:
You can see that though Total2 has not yet broken that steep ascending TL, it's now looking more probably that it will. Why? Well because it is more probably that we retest previous major resistance (that big red Level of support) than that we hold current support.
From a technical perspective, a retest of our previous resistance is highly probable and quite honestly, needed, for further continuation to the upside.
#2 That level on the RSI is starting to be broken. Now, it may hold by the time the candle closes today, but this is something we must watch closely. Remember what I said in the last video? These levels on my RSI charts are currently acting as lead indicators for the price levels on my charts. We saw that several major levels had been broken in my video, and that is why I was so certain we'd get this 10-15% pull back. Here again a good support level is current being tested and may break. So, it is possible that if it does our 2120 support would also then break. This would domino into alts for an even deeper retreat where we could start to look to buy long again.
So far, this has been a healthy little pullback. And I think we could see a little more before it's time to re-enter longs.
Stewdamus
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Haven’t seen you post lately hope everything is ok.