In depth crypto logic for a deeper decline
Updated
As time goes by, we can see some unsettlement in the crowd. On the weekend we saw 10bn of liquidated positions. See our call on the move 
Cubbish pressure is an internal joke of it only being a little bit BEARISH.
I have posted a few articles recently on BTC & thought I would highlight the overall sentiment.
BTC is a driver - like it or not. Much like DXY in Forex, If Bitcoin is strong then alt coins will follow (usually) until the professional money comes & stays it will always be BTC and the rest later. Now as most retail traders assume - more institutional money will drive up the price, although it's correct as it's making the overall pot bigger. It's actually a heightened risk to the average joe.
You see - institutional money is deemed smart, the top percentile, traders trading on behalf of the high net worths and so on. Much like the front of a cigarette pack, brokers warn that >75% of retail traders lose money. The reason for this, is institutional money is made by trading against the clueless. Look back at the mortgage scandal "the big short" - if it wasn't bad enough that banks were selling clients crap, they were going even further by opening shorts against the positions they were selling. A great investment if your wealth manager was investing in the funds. This happens in every market - So more big players in Crypto, yes brings an overall bigger value. But it brings professional games.
Take a look at the obvious situation in the Total market cap chart.
Then we have the Others - Anything crypto not BTC.
Our indicator here shows the strength of the total market in the histogram, BTC and alts. We have clear divergence forming on the negative strength of BTC and the rising alts/total. Think of what was said above. The weekend's drop took 20% off the alts market, but not as much off BTC. What happens to alts, when the bigger drop completes for BTC???
finance.yahoo.com/news/sunday-bitcoin-flash-crash-sees-095427341.html This is the story on the value of liquidated positions.
In the shorter term (Daily) we can see a slightly different picture - this shows all the main focus (BTC,XRP,ETH) with a slow reduction in strength, marrying the stochastic situation - we can expect a slight push up near term (sucker more longs) and a deeper decline.
Let's dig a little deeper -
This is BTC/DJI - a consolidation phase.
That is then supported by the slow consolidation of DXY.
This also paints a similar picture for currency pairs such as EURUSD.
See the related ideas below. I truly feel more is still to come - although we are only at a weekly 3 in Elliott terms and inside a monthly 3 as well. Strength for crypto will come, but not before breaking many more hearts and emptying wallets.
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
I have posted a few articles recently on BTC & thought I would highlight the overall sentiment.
BTC is a driver - like it or not. Much like DXY in Forex, If Bitcoin is strong then alt coins will follow (usually) until the professional money comes & stays it will always be BTC and the rest later. Now as most retail traders assume - more institutional money will drive up the price, although it's correct as it's making the overall pot bigger. It's actually a heightened risk to the average joe.
You see - institutional money is deemed smart, the top percentile, traders trading on behalf of the high net worths and so on. Much like the front of a cigarette pack, brokers warn that >75% of retail traders lose money. The reason for this, is institutional money is made by trading against the clueless. Look back at the mortgage scandal "the big short" - if it wasn't bad enough that banks were selling clients crap, they were going even further by opening shorts against the positions they were selling. A great investment if your wealth manager was investing in the funds. This happens in every market - So more big players in Crypto, yes brings an overall bigger value. But it brings professional games.
Take a look at the obvious situation in the Total market cap chart.
Then we have the Others - Anything crypto not BTC.
Our indicator here shows the strength of the total market in the histogram, BTC and alts. We have clear divergence forming on the negative strength of BTC and the rising alts/total. Think of what was said above. The weekend's drop took 20% off the alts market, but not as much off BTC. What happens to alts, when the bigger drop completes for BTC???
finance.yahoo.com/news/sunday-bitcoin-flash-crash-sees-095427341.html This is the story on the value of liquidated positions.
In the shorter term (Daily) we can see a slightly different picture - this shows all the main focus (BTC,XRP,ETH) with a slow reduction in strength, marrying the stochastic situation - we can expect a slight push up near term (sucker more longs) and a deeper decline.
Let's dig a little deeper -
This is BTC/DJI - a consolidation phase.
That is then supported by the slow consolidation of DXY.
This also paints a similar picture for currency pairs such as EURUSD.
See the related ideas below. I truly feel more is still to come - although we are only at a weekly 3 in Elliott terms and inside a monthly 3 as well. Strength for crypto will come, but not before breaking many more hearts and emptying wallets.
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Note
Smaller timeframe confluence 
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Disclaimer
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