BTC And Altcoins Developed Divergence, Potential Altseason!

1 ก.ย. 2021

Hello,

Welcome to this analysis about Bitcoin in comparison to the Altcoin Market-Cap, we are looking at the 4-hour timeframe perspectives. Especially in these times, the divergence between certain cryptocurrencies is increasing more and more while there are cryptocurrencies that form bullish structures and developments, there are others forming more neutral patterns while others developing bearish movements. These divergences are highly important to assess for a potential arbitrage within the market and as I discovered Bitcoin and the Altcoin Market-Cap recently developed an increased divergence especially as the Altcoin Market-Cap formed an upside-breakout while Bitcoin is still in the range, such a beginning increase of divergences can indicate an upcoming Altcoin-Rally as we have seen them already severely in the past.

Structural Developments:
In this manner as when looking at my chart, we can watch there that both Bitcoin and Altcoins formed this ascending-trend-line in the structure marked in black in my chart, furthermore the time and price in which the divergence began is marked in blue, while Bitcoin trended slightly bearishly to the side and downside to make lower lows in the structure the altcoin market-cap managed to build up in this range to set up for the upside-breakout. The main difference is here how Bitcoin and the Altcoin Market-Cap reacted to the ascending-trend-line, while Bitcoin formed a clear breakout below the ascending-trendline the Altcoin Market-Cap bounced to the upside within the ascending-trend-line, also the Altcoin Market-Cap is way above the 100-EMA in red while Bitcoin has severely tested this EMA which is more bearish.

Upcoming Determinations:
Taking these factors into the consideration now in the next times a pullback in both pairs is more likely to consider nevertheless it will be a different way on how these two pairs will develop in this pullback. With Bitcoin it is more likely that it firstly stays below the orange trendline as this trendline is serving as resistance while with the Altcoin Market-Cap it is the case that it formed actually a breakout above this orange trendline, therefore there is a higher likelihood given that the Altcoin Market-Cap confirms the trendline as sufficient support and builds up above this support, when such development happens there is a higher possibility given that the divergence increases more and Altcoins tend to rally further as they already started with this main range-breakout, nevertheless it will be important how both pairs react into the orange trendline given in both of them.

In this manner, thank you for watching my analysis about the BITCOIN and ALTCOIN Comparison and what are the pivotal points to consider in this case in the next times, support the analysis with a like and follow or comment for more market insight!
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Information provided is only educational and should not be used to take action in the market.