So I’ve read up on some charting techniques recently, and stumpled upon the 50% retracement rule after which I went to my charts and I started to look at the recent price movement with that pattern in mind. And lo and behold, it is everwhere.
BTC market cap, did a 50% retracement from the bottom of it’s previous ATH in dec 2017.
And the entire alt-coin space is in a 50% retracement vs btc. That is, every single alt-coin that has pushed against btc recently, has had a 50% retracement of it’s btc price. Often a bit more in USD terms, as btc has dumped as well.
My personal favorite chart is BTC dominance, which shows btc dominance crashing down through a rising traingle formation, only to re-test at exactly 50% of the current break-out. It can’t get much clearer than that.
So what does this mean? In my opinion it means that the enture crypto market is set for another big leg up, and alt-coins are set to rally against btc in the coming months. So with regards to my own portfolio… I just hodl. I don’t sell the btc denominated dip, as this dip is part of a bullish pattern.
Now, what timeframe should we expect here? Personally I think we need to form a teacup and handle formation, and right not we are building out the saucer with sideways action. So patience is going to be a virtue here.
Some examples below. My portfolio is filled with examples. Only exceptions are coins without history.
(Edit, I had plenty of images of charts here that clearly support my findings of almost all major alt-s experiencing a 50% retracement against previous ATH in BTC price terms, but I can’t post them, nor links…)