Altcoins Drag Bitcoin Down | Crypto Markets

Foreign. I'm looking at volumes. We have seen the highest one hour volume over the past 30 days during that sell off on Sunday. This is quite significant as it happened over the weekend where the volume is quite light. Looking at the source of the volume we see Bitfinex as the leader. These events not only happen in the crypto market, they also happen in traditional markets, especially in emerging markets. There we also see big spikes or sell offs in currencies or assets. This can happen when a big trading account is putting a position on and then either getting liquidated, then it gets ugly or is trying to get out of the position in profits but the market can't handle the volume and it still tanks or spikes like we see in cryptos. Let's look at our technical analysis. We have the BTC dollar chart four hours prepared for you. We added some indicators like the time volume bars which are the horizontal bars and the price volume bars which are the vertical ones. Additionally, we have the Ichimoku cloud on our chart. Let me quickly step you through our Ichimoku setup. First of all you have three moving averages which are making the cloud. The first one is the baseline which is in blue. Then you have the slow moving average which is in red and you have the fast moving average in green. Looking at the sell off on Sunday you can see that we went straight through the baseline which would have been first to port, but we stopped at the 3753800 level which comes in right at the upper end of the Ichimoku cloud. Additionally it comes with quite high volume on the price volume bars. So for us for the next few trading days, this is quite a significant support level. The big picture level which will determine if we stay in a bullish setup as we are right now. Green cloud or if we turn into a bearish One is the 3653700 level. This is the lower end of the cloud and it converges with our accumulation zone. If we break through that, the bullish scenario is invalid. Now let's look at our rotation report here. We don't see any changes in our call. We still overweight altcoins versus bitcoin. MacDs in bitcoin have not turned bullish yet. They're still bearish where the MACDs on the 2 to 10 ranking altcoins are bullish and the MACDs on the 11 to 50 ranking altcoins are neutral to bullish.

Sorry to disappoint. Unfortunately I didn't see any specific catalyst that we could point to that was quite a drop. But I don't see any like real outstanding reason on the fundamental side, nor on the technical side for it. This chart just kind of shows all of the top traded coins on one single chart. And what we'll notice here is that it was some of the altcoins, actually, specifically the DAPP coins, Ethereum, Eos and Neo that led the decline. So NEO is this green line here we can see also. Sorry, Neo, Yes, NEO is this green line here we can see also Ethereum and Eos. Eos was the biggest decliner. So what we're seeing, and this is kind of a fundamental change in mindset in a lot of the crypto world. And we'll notice that there's becoming a greater divide between Bitcoin and the altcoin markets. So in this case we can see that the altcoins were the ones that actually dragged Bitcoin down. So if we put the moves into context a little bit. So actually here we can see the, you know, the declines of November, the bottoming out in December. January was kind of, you know, the, this downward staircase we can see from the start of February. We got that surge on February 8th and then another one last weekend and then on Saturday we had a spike up above 4,000. So the declines that we had on Sunday, actually most of that decline was just reversing Saturday's gains. So we can see this kind of upward staircase. And the fact that we're holding now at, at around 3,800 is an incredibly positive sign from technical viewpoint, cautiously optimistic. I mean people want to be bullish in this market. They recognize that we are, you know, 80%, 90% from the all time highs. You know, a lot of clients are starting to nibble at these, especially the bigger clients are starting to nibble at these prices and starting to accumulate in their accounts. But obviously because crypto is high risk, people want to do that with a very small percentage of their overall equity. What we can say is that we're right now at the tail end of a bear market. It is possible that the market can continue downward from here, but I believe that it's more likely that we've already found the bottom at around 3,000. We do see that trend of institutional players entering the market. We do see that trend, especially with some of the futures contract.

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