(Image source: Path to Altseason)
Money flow in the crypto market can be divided in four phases as shown above. Most of the altcoins pump once the big guys i.e. Bitcoin and Ethereum, has already reached significant highs from previous lows. However, during a bear market it is these alts which loose their money flow faster than ever.
To view overall marketcap of the crypto market, we can check TOTAL (Bitcoin, Ethereum, and everything), TOTAL2 (Ethereum and everything, no Bitcoin), and TOTAL3 (Crypto market without BTC and ETH) on TradingView. The TOTAL3 chart on the weekly timeframe gives us a clear indication that money is yet to flow into altcoins. You can see in the chart below: dashed-yellow break-of-structure (BOS) levels, grey imbalance zone, and Fibonacci levels marked out. More often than not the price/value tends to reach 0.5 fib levels of an imbalance zone. If such an event occurs, it would be an opportunity of a life-time to pick up some the favourite alts.
The downtrend is nearing its end, soon we will have an accumulation season.
Mark your alert levels and Happy ALTing!
@cryptopi314
The content above is for educational purposes only. It is not a financial advice.