Good morning Crypto Nation, now that the chaos is ending, how about we take a look at what could happen?
In this article we will review some previous analysis, check the health of the market and elucidate what we can expect.
What will happen to altcoins?
Can we not worry?
What does $BTC tell us?
As usual, let's recap a bit:
Fortunately, the warnings were published in time and they were fulfilled. This is not due to knowing how to guess or get it right, it simply happens that the market is very repetitive.
I have been in this for about 5 years now, and although bull markets are not the same, they resemble each other. And of course, there are situations that repeat until exhaustion.
What we saw last week was a total cleaning of positions; historically, these corrections tend to hover around 30% drops. This way, positions are cleaned up to 4X, once the large institutions and whales are liquidated, they prepare to drive impulses again.
This does not mean that it's all over; on the contrary, it means that the party is on fire, but we need to kick some guests out...
Very healthy charts.
Yesterday I mentioned that on the daily chart, we are completely bullish and today we confirmed it.
Let's go with some examples:
This corresponds to an Analysis done 8 days ago about TRX.
With some excesses on the lower side, Tron shows us how the structure is respected and does not breach the key levels on the lower side.
Both the box and the line were drawn and nothing was touched. Tron indicated that the drop would be strong, but that it wouldn't be structurally dangerous.
BCH Bitcoin Cash, is one of the coins I chose to trade for two reasons:
Its correlation with the price of BTC
The great growth potential it has, providing better returns than the original BTC.
On a daily basis, it impacted the origin of the last impulse, without touching it, however, it provided a double confirmation to go long.
Its first touch was instantly absorbed; on the second day when it touched again, it had an excess to clear positions and an abrupt absorption.
Polygon is another that tells us interesting things:
Like Bitcoin Cash, its behavior in the lower zone was similar. The difference is that its absorption was much greater and did not allow for a bit more entry below.
All of them were traded, both in the private portfolio and in the public copy section.
Why are they important?
The reason they were chosen is due to the significant participation of institutional capital within them.
Tron is the second network where the most USDT are minted and stored; Polygon was for a long time highly bought and chosen for real institutional use cases; and finally, BTC Cash, that bastard brother of BTC that was so hated, remains in the top 50 and like BTC, it doesn't stop attracting money.
These three will have very good returns, but they are also warning us of how institutional players operate. Driving down the price but defending the area to prevent disasters.
Why could we rise?
Money is flying...
Only on the Ethereum network have more than 2 trillion USDT been created, which means liquidity for purchases.
Meanwhile, Binance announced its own stablecoin, which adds more purchasing power.
Finally, XRP received approval to mint its own stablecoin on its network. Given that XRP was created for institutional capital, it wouldn't be surprising to see massive inflows through that means into the space.
If we also consider that there is currently greater regulatory clarity and that most alts, including ETH, are far from their all-time highs, we can see a sustained and aggressive rally.
⚠️BUT WAIT⚠️ It's not going to happen right now, today we just found a possible floor, but not a definitive one.
Some alts will still continue to bleed until structural cycles replicate in them, so don't throw the house out the window.
During the next few days, we will have a certain consolidation, very likely a range that will be horrible to trade. And the predisposition to fall is high, even if it is to liquidate and rise again.
If you are trading, use little leverage or hold on spot.
Farewell from Citizen Crypto! Be happy, we survived a storm and are ready to recover.
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