16.07.21 Technical analysis Altcoin Index and Shitcoin Index – altcoins are declining to key supports, an opportunity?

Fridays are reserved for the Altcoin Index or Shitcoin Index, which we will keep today. BTC hasn’t shown much since yesterday’s analysis, so at least until Monday we can take time off from this market. However, during yesterday’s stream, the price began to push down slightly. It wasn’t a big shift, but if it goes on, BTC will quite possibly break the $ 30,000 in the coming days.

Current situation at 1D TF Altcoin Index (futures)

In that one week, there was a shift in the altcoin index. It is now clear that the progression to the S / R level of 3,800 points has completely failed. However, even seven days ago, it was clear that the momentum up was very weak and the course was gradually rotating downwards again. The Altcoin Index therefore did not show much since the last rebound from the support of 2,600 points.

Although the current decline is not aggressive, it can be assumed that the inertia will persist until further testing of 2,600 points. Therefore, it is rational to calculate with already third by testing said level and preparing well for it. How can you track price action from the last few weeks, the second the testing ended in a reflection, but not too strong.

So how will the third turn out? Will the last reflection come, but it will be even weaker than the other? If we are to start from that market structure, we have to reckon with it somehow. It is also quite possible that the third test will result in a breakthrough in support. Then the target is up to 1,600 points, which is based on historical price action and Volume Profile levels of great opportunity.

He’s definitely here financial risk sufficiently minimized. However, the possibility that the level will last cannot be completely ruled out. It must be clear to all of us that the Altcoin Index primarily follows BTC. If BTC keeps the $ 30,000, it’ll probably stand up to 2,600 points on the altcoin index.

Otherwise, the volumes began to rise slightly, the last three days we can see that there was a gradual increase in volume. However, it can only be something temporary that lasts only a few days and then it returns to “normal”. If volumes however, they will rise along with the falling price, the Altcoin Index has a downward movement confirmed and the risk of a breakthrough increases.

Indicators

It is very useful for us to know that the RSI curve nicely respects the plotted resistance diagonal. So is the next destination path below 30 points? We may find out soon enough. Otherwise, after more than two weeks, the MACD is heading for a bearish cross. The momentum up was just as weak.

Current situation at 1D TF Shitcoin Index (futures)

The Shitcoin Index failed to maintain an S / R level of 4,700 points and the odds are currently below the level. The fact that the top wall of the drawing was certainly helped channel works as resistance. I would just like to point out that I used to draw this channel in a rather “sloppy” way. I adjusted it enough to better correspond to market developments, but only marginally.

Because the course respects given structure, so we can assume that in the following days we will test the S / R level of 3,000 points. However, it is quite possible that strong support will offer a large area sharpness and Volume Profile. In fact, the course is already in this area.

In terms of volumes, the shitcoin index is even worse than the altcoin index. Volumes have been steadily declining since mid-May and have been bizarrely low for about two weeks now. Therefore, I would like to point out again that the liquidity on shitcoins is quite poor and at the same time there is a risk that if there is a panic, the rinsing may be even worse than the one in May.

Indicators

RSI did not get even above 50 points, the local high is at about 47 points, which is bad enough. We are currently declining and I must say that the values ​​of the indicator are declining rapidly. With such, we will soon test the borderline 30 points. Here, too, the bearish cross takes place, it was inevitable due to weak positive inertia.

In conclusion

The Altcoin index and the Shitcoin index are still not doing very well, and all indications are that the decline will continue in the coming days. In general, of course, these markets only follow BTC, so for a bigger “spill”, it is necessary for the king to go to the ground.

Respectively, I don’t think that without an impulse, altcoins and shitcoins will fall on their own. What is certain, however, is that if they fall under close key supports, this is one of the biggest opportunities for all bulls, which occurs only once a year. Therefore, stay alert and watch the market!

ATTENTION: No data in the article is an investment board. Before you invest, do your own research and analysis, you always trade only at your own risk. Cryptheory team strongly recommends individual risk considerations!