Is this the time to take a short on the major altcoin market?
Bitcoin recently got hit by a significant drop (11% in one day) and this raises questions about the future of the altcoin market. Some of the majors (aka top 20 Marketcap from CoinGecko) have seen a drop of 20%!
Will the altcoin market drop further or is it going to recover?
That is what we are going to review in detail in this Major Altcoin market Analysis.
ETHBTC Recently dropped on a support level (green area). The reaction on it is so far so good but it would not be a surprise to get lower and test the 200EMA.
The ETHUSD Chart shows a drop on a support trendline and a fight with the 200EMA. I consider both charts good for long positions.
LINK has been going up for months but it seems to have found a local top. I would not say that the ATH of LINK has been reached yet, but we may see a decent correction before another attempt to going up.
LINKBTC Chart has gone below 200EMA and made a Lower High (LH) and a Lower Low (LL).
LINKUSDT Chart has entered in a bearish channel that we can call Bull Flag since the previous move was a leg up. The Bull Flag is a continuation pattern, meaning that a breakout of the resistance would be bullish for LINK. However, we recommend you to wait for a confirmation of a breakout and not to try entering in a buy position during this correction.
Binance Coin (BNB)
BNB has seen its range reverse to an uptrend recently. Both Charts were looking very promising before the BTC crash yesterday.
BNBBTC is in an uptrend channel. A good strategy is to start buying between the 200EMA and the support trendline, and to book your profits at the resistance trendline.
However, BNBUSDT Chart seems to enter in a correction since the whole uptrend was supported by the EMA200 and the price has closed below.
ADA has been one of the first major to overperform Bitcoin. With the Shelley Release, it was fueled by strong Analytics.
After reaching 1595 sats and 15.4 cents, it started correcting and broke some supports.
On the ADABTC Chart, we have now reached a good level of support coupled to the 0.618 level of Fib Retracement.
On the ADAUSDT Chart, we have not been correcting that much despite the recent BTC crash, but we reached another level of support and the 0.5 Fib retracement level.
If you decide to take any position on ADA, make sure to identify the correct zones of support and resistances to take profit. For example, on the ADAUSDT chart, I would be careful and reduce my exposure if we reach the EMA200.
Complete Trading Guide
After a massive uptrend catapulting Tezos to the Major Marketcap coins, XTZ has been consolidating in a range on the BTC Chart.
On the XTZBTC Chart, you can easily identify the range between 24k sats and 39k sats. This range is an opportunity to take some swing trades with a managed risk.
The XTZUSD Chart is quite different. The price fell off after the recent BTC crash but did not reach the major support level, coupled with the 0.618 fib retracement. If XTZ ever comes to this price, I would consider taking a position.
As recommended before, I would recommend anyone to find the major resistance levels to take some profits.