Journalist
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Important collection restaurants
What happens on the Altcoin market?
TOTAL2 becomes resistance, ETH.D fades and speculative foam in smaller altcoins is building.
How does BTC positioning influence the market?
BTC.D has increased 1.01%, while ETH.D has fallen by 2.86%, which shows that capital is running back in Bitcoin.
A week over in Q4, the market circles back to the level of the beginning of September.
The Fear & Greed Index has returned to the ‘fear’ zone. Bitcoin [BTC] is only 3% above the monthly opening of $ 108k. Likewise, the total market capitalization (total) fluctuates around 3% above the monthly basis of $ 3.70 trillion.
In short, the market has returned almost 97% of the profit in September. Altcoins, however, take the hardest, with a total 2 (former BTC market capitalization) with 4.43% (2x BTCs loss) after rejected in the key resistance.
Source: TradingView (Total2)
However, this time there is a remarkable divergence.
Unlike late Q2 and early Q3, when ETH Dominance [ETH.D] Almost doubled to 15% and a total of 2 was 30%, with $ 510 billion in alts, ETH.d is the opposite way to see rotation in Altcoins is weak.
For the context, ETH.d has been 15%in a steady downward trend since the peak from the middle of August, while a total of 2 was $ 1.73 trillion, which means that Altcoins does not get the usual boost of ETH, so that capital is locked elsewhere.
Altcoin Market is faltering while BTC is holding ground
Even with ETH.D on the sidelines, the Altcoin seasens index still came up.
The index was closed around 80, but on September 19 the index broke out to 100. The trigger? Heavy capital turned in Alts after aster [ASTER] launched and send the index to a high of seven years.
However, the pump did not last. At the time of the press it is back to 69, only 10% open above September. The larger collection meals? This is no longer a “Altcoin season”, which shows that the recent capital flow was usually speculative.
Source: Blockchain Center
In short, Altcoin rotation starts to fade.
Supporting this shift, Bitcoin Dominance [BTC.D] This week 1.01% has risen (the only metric connection above September lows), while ETH.D has fallen by 2.86%, which signals the rotation of capital in BTC again.
That is why, with in total covered, fading ETH/BTC rotation and speculative foam building in smaller alts, the Altcoin market looks ready for a deeper correction, making this an important divergence to look at Q4 positioning.