The Entire Crypto Market is Pretty Much Primed For a Breakout… but….
If we didn’t just have a brutal year long bear market, crypto charts would be looking very hopeful right now. Essentially all major charts are breaking out or primed for a breakout.
We have LTC, ETH, XRP, ADA, and TRX all showing real strength, we have BTC and the TOTAL cap painting a nice inverted head and shoulders (a bullish reversal pattern), and generally we have a solid week until the ETH fork (likely one of the factors in the all around bullishness).
The problem here isn’t crypto charts, it is 1. a knowledge of the 2018 bear market, and 2. the fact that USDT/BTC is also rather bullish (as you can see in the above chart)… i.e. the dollar is setup bullish against BTC and BTC setup bullish against the dollar at the same time (sort of an odd place to be in, but arguably the case).
The reality is, 2018 stable coins ran and crypto spent most of the year acting like a sad sack of rekt potatoes.
The reality is, TUSD/BTC and USDT/BTC (stable coin charts vs. BTC) don’t exactly look like they have capitulated yet.
Stables are still showing their moonish qualities, and the 2018 bear hasn’t shown signs of being dead yet, and thus we are dealing with a reality in which enthusiasm over bullish setups for cryptos should logically be curbed a little.
Sure you have rather cheap compared to 2017 and 2018 cryptos breaking out or about to break out across the board, this really beautiful setup with potentially cheap coins set to moon, it isn’t something anyone serious about crypto long term or short term should ignore…. but, you also have this specter of stables and bears haunting the charts.
Really odd place to be in…. but …. but … crypto is usually odd, so welcome to 2019 I guess.
That said, for anyone new to the space or for cash traders, those 2x runs on BCH, TRX, and ETH recently are nothing to scoff at! We may not be in the heights of 2017 mania, and we may have fallen a long way from all time highs, but a few of these runs have been pretty serious… so there is this glimmer of hope and this very real reason to be excited as a trader.
Bottomline: Both the above charts will likely play out in waves, and that means both could have their moment to shine (especially considering the timeframes where the more zoomed out usdt chart can account for the btc chart being bullishs short term)… but ultimately one chart has to win (as the charts are essentially inversions of each other).