25.06.21 Technical analysis of Altcoin Index – are we balancing over the abyss?
3 min readUnsurprisingly, the Altcoins reacted to the last decline to a much greater extent, but their starting position was much better due to the earlier stronger retracement, so such a tragedy did not happen again. Although it was actually started.
Current situation at 1D TF Altcoin Index (futures)
The Altcoin Index has a definitive breakthrough from the monitored triangle and at the same time the odds have fallen below the important level of 3,800 points. Below this level, the exchange rate consolidated briefly, followed by a solid rinse, which was already being driven by BTC at this time. Since Monday, the development has been almost identical, on Tuesday the key support was tested, where the Altcoin Index stopped in May.
However, this time there was a slightly deeper decline, thanks to which we have a lower low in the chart. The total loss since the puncture from the triangle is therefore about 32%. In fact, however, the support lasted, Tuesday’s candle closed like a Pin Bar and the next two days were slightly growing. Which, in my opinion, is disproportionate in relation to previous developments.
As with BTC, I lack much more aggressive reactions after Tuesday. I’d expect Wednesday’s candle to close impulse, but it just didn’t happen. Today is weaker again, but it is still more than 12 hours until the final close. As far as volumes, in the previous analysis, I emphasized that such bizarrely low volumes in themselves signal some movement.
Which really happened, so keep in mind that when volumes fall too low, the market is about to break through. In any case, during that decline, volumes increased – once, but in the context it was no glory. The altcoin market is still so uninteresting in this respect, which can be explained by the fact that no one trusts the altos very much. What BTC will do is now crucial for everyone, and market conditions are still quite risky. In layman’s terms, it is not clear where the market wants to go.
Indicators
During the last drop, a bottom of about 31 points formed on the RSI indicator, so we almost touched the border level. In any case, it is clear that the value of the index has fallen by about 65% and there is still a lot of room for decline. Popularly speaking, the market is not oversold. Nothing has changed with the MACD, curves without a trend, zigzagging like snakes.
In conclusion
The Altcoin Index have already had a fairly large reduction in their all-time high value. However, it is important to keep in mind that there is more than enough potential room for decline in the short term.
Which volumes don’t help either, because we can also imply that liquidity is bad. Then there is a serious risk that altcoins and shitcoins will get an even bigger beating. Which, of course, the market is aware of, so the interest is minimal.
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!
