TOTAL3 is the total market cap of cryptocurrencies.

TOTAL3 is the total market cap of cryptocurrencies excluding BTC and ETH.

Several possible scenarios:

(1) BTC (grey line) and altcoin signals (gold line) are both rising.

This is a clear uptrend where both TOTAL and TOTAL3 are rising. Usually in this case, BTC.D is either sideways or falling. This is a bull market.

Recommended action: This is a time to go long. If the altcoin signal is stronger than BTC, you can increase your investment. Otherwise, you should be cautious.

(2) BTC and altcoin signals are both falling.

This is a clear downtrend where both TOTAL and TOTAL3 are falling.

Recommended action: This is a time to de-risk and allocate more to stablecoins and blue-chip coins. This is the only case to consider shorting.

For mean reversion traders who only go long, you can build positions in batches or buy on dips.

(3) BTC is falling, but altcoin signals are rising.

This is not common and occurs when Bitcoin is falling but altcoins are outperforming BTC.

Recommended action: If BTC is just sideways instead of falling sharply, there may be a short altcoin season. This may be a good time to take risks.

(4) BTC is rising, but altcoin signals are falling.

Bitcoin is outperforming other cryptocurrencies in the market and is in an uptrend market.

Recommended action: It may be the preparatory stage before the bull market, all cryptocurrencies are rising but BTC is outperforming altcoins. $BTC $ETH #MtGox钱包动态 #MegadropLista #ETH