General lesson + BTC and ETH showing strength Analysis:
BTC bounced off RSI support and is now at a resistance level, ETH and global markets like DOW also jump and showing strength. If BTC hold this level and give breakout many alts will jump 20-25% in the next 2 weeks. Reason for todays bounce back could be Amazons announcement of their Q4 earnings, making their stock rise 17% a day after META dropped, the biggest single day gain in US stock market history.
Lesson part:
BTC dominance has been steadily decreasing but is up a little bit in the last hour or so, and the total market cap is moving up. What does this mean?
If we look at the following rule below we can make predictions on alts on the market direction.
BTC D up + Mcap up = Good for all coins
BTC D up + Mcap down = Good for BTC but bad for alts
BTC D down + Mcap up = Very good for alts
BTC D down + Mcap down = Very bad for btc and alts
Use this rule accordingly.
Trade safely:)
- Seb
