I love finding patterns ... most traders do.
I think I found a gem here.
The top line is BTCUSD open long positions on Bitfinex. Consider it the volume of BTC that is being longed on Bitfinex.
The bottom waves are the relative USD price for some major alts (ETH, IOTA, NEO and EOS). I could add more, but you get the
point. Other than EOS which went gang busters ahead of main net launch, the other three follow the same trend, which has
been summarized in black ink.
Do you notice, what should be slapping you in the face? Yes, as BTCUSD longs react, the alt prices react opposite.
This simply depicts the normal BTC bull cycle ... BTC is about to go up, so people long, and they cash out alts (or trade alt:btc pairs) to long more BTC, resulting in alts bleeding (last week). BTC reaches a consolidation level, and BTC longs start taking profit. Traders see BTC is not going anywhere, but the alts are cheap ... so they use that cash to long alts. Alts BLOOM. Alts exhaust their rally, and start going down ... tell tale sign of an impending BTC dump. BTC dumps, everyone including Rover shorts BTC. Go back to step 1.
Notice, BTClongs are closing out in a serious way on Bitfinex. This could mean we have entered a new phase in the cycle. The phase where BTC profits go into alts, the "Alt Bloom" phase. Let's face it, alts got their butts kicked last week, and many alt:btc pairs are on fundamental support lines right now (normally a good time to buy).
So as long as BTC doesn't tank over the next say 4 to 10 days ... I'm going to hold onto those alts, and take advantage of the potential Alt Bloom Phase.
Good luck everyone.
Remember, only a fool relies on one potential outcome.
Do not use this info for financial/trading decisions. For educational purposes only.
I think I found a gem here.
The top line is BTCUSD open long positions on Bitfinex. Consider it the volume of BTC that is being longed on Bitfinex.
The bottom waves are the relative USD price for some major alts (ETH, IOTA, NEO and EOS). I could add more, but you get the
point. Other than EOS which went gang busters ahead of main net launch, the other three follow the same trend, which has
been summarized in black ink.
Do you notice, what should be slapping you in the face? Yes, as BTCUSD longs react, the alt prices react opposite.
This simply depicts the normal BTC bull cycle ... BTC is about to go up, so people long, and they cash out alts (or trade alt:btc pairs) to long more BTC, resulting in alts bleeding (last week). BTC reaches a consolidation level, and BTC longs start taking profit. Traders see BTC is not going anywhere, but the alts are cheap ... so they use that cash to long alts. Alts BLOOM. Alts exhaust their rally, and start going down ... tell tale sign of an impending BTC dump. BTC dumps, everyone including Rover shorts BTC. Go back to step 1.
Notice, BTClongs are closing out in a serious way on Bitfinex. This could mean we have entered a new phase in the cycle. The phase where BTC profits go into alts, the "Alt Bloom" phase. Let's face it, alts got their butts kicked last week, and many alt:btc pairs are on fundamental support lines right now (normally a good time to buy).
So as long as BTC doesn't tank over the next say 4 to 10 days ... I'm going to hold onto those alts, and take advantage of the potential Alt Bloom Phase.
Good luck everyone.
Remember, only a fool relies on one potential outcome.
Do not use this info for financial/trading decisions. For educational purposes only.