Cryptocurrency Review And Week-Ahead Outlook: Bitcoin And Altcoins

Exchange Rates UK TV: Quick look over what the crypto market has done this week and how we should anticipate the market to react next week.

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Welcome to Exchange rates UK TV, we’re gonna go over our crypto review and outlook for this week ending and looking forward to next week.

Talked a lot about bitcoins likely pullback, and, you know, a continuation of the move south, given the extent of the move that we’ve had. You know, we’re really just seeing today, you’re seeing the S&P 500 lower, the NASDAQ, the Dow Jones, the Russell, a lot of the other broader indexes too, although the Ozzy stocks are pretty flat, but the French market, the CAC is down 1% and the FSTE 100 is down 0.8%.

You’ve got oil lower by two and a half percent for West Texas. The 10-year and 30-year are both down a good amount. You’ve got the the 10-year down 3.28% and you’ve got the 30-year down 1.6%.

So we’ve got those markets all going down, then you have Bitcoin down 8% today, I think it’s been down close to over 12% at one point today. You know, that’s just kind of how that goes.

But do look at this though. The total market cap is down 7.29%, whereas the altcoin market is down only 4.42%. You’re actually seeing a lot of the Bitcoin pairs of cryptocurrencies are doing better against Bitcoin. So they’re doing better against the dollar than Bitcoin is. So we see the altcoin market showing a little bit more resilience here.

But of course, we see Bitcoin trading lower today, Ethereum as well. Really, this is just going to be the pattern. I would expect to see this continue throughout the weekend. I mean, really, what we’ve got looking like gets developing here is is a is a bullish pennant, just a triangular formation, whether this is going to be a symmetrical triangle, or whether we’re going to see some type of descending triangle or an ascending triangle, you know, either way, it looks like we are just consolidating the range of the price action as we go longer into the trading days here at the beginning of 2021.

Just be aware of that, I want to take a look at the relative rotation graph for cryptocurrencies. These are cryptocurrencies that I pay attention to, some of them I have positions in, but all of these are all of these US Dollar pairs are are weighted against the comparison index here is the BTC/USD pair.

And right now you can see the altcoin market, we talked about this a little bit last week, if I go back to if I remember what the date is Friday the 8th, that brings us back to here, we did talk about how altcoins are more than likely going to outperform Bitcoin, they’re certainly looking like that.

We saw everything here, transitioning from the weakening quadrant, or the lagging quadrant, which is this red one, moving into the improving quadrant, which is the light blue teal one. And as we move it forward, we see the pairs are just kind of shifting very well against Bitcoin.

But as we’ve gotten into the last few days, we’re seeing a lot of these pairs start to kind of show a little bit more weakness. So you have been travelling LUME lower, Stellar Lumens has been doing way, way, way well, and as and as well into outbounds, the further something is away from the middle, the better the trading opportunity.

In other words, if you see something like Stellar Lumens, like a significant distance away from the middle, that means if you’re a contrarian trader, you would be looking to short this and this has the best short opportunity out of out of all of them.

Whereas if you were looking down here, and you were looking for something to go the opposite, and you’re looking for something to go long on, the one that you would give you the most theoretically, the best probability to return is GRT. That one is the it’s pointing straight up and we’re getting pretty close to the next quadrant. So that one is one that could certainly do very well.

Just be wary though that if you know Bitcoin does, the whole market can drop, but Bitcoin can drop less than the altcoins, and then you would see a very fast shift here, you’d see all of these arrows just kind of pointing straight down into lagging.

But just be aware of things that are pretty weak and are going to be susceptible to any downside pressure in the cryptocurrency market, you have VET, Ethereum, Cardano, even BAND, Neo probably, but otherwise, just be aware of that.

All altogether though, the altcoin market is still looking strong. It is still looking like it’s going to outperform Bitcoin for a little bit.

And, by the way, Ripple, just something I’m not touching, I wouldn’t touch it. It is a scammy coin of scam coins. And it’s just kind of out here in La La Land because while it’s been delisted from a lot of major exchanges, and it’s very susceptible to some volatility, in both the higher and lower moves there.

So just watch out for this market as we transition to the weekend next week. And yeah, thank you guys for tuning in this week.

From those of us here at Exchange Rates UK TV, you guys have a fantastic week. Don’t forget to like and subscribe, and I look forward to speaking with you all next week.