The Fed's worse nightmare

What's the impact on the altcoin market

GM Explorer! How are you? If you're new to crypto, the last few days might have been some of the most challenging of your life.

However, in crypto, a 40% drop in a single day is just another Tuesday. We hope you didn't panic sell?

Today, we’ll explore why the market reacted this way and what to watch for in the coming days.

Let’s dive in!

The Fed's Worse Nightmare

On Tuesday, the ISM data was released, and the numbers came in higher than expected. Within hours, over $650 billion was wiped out of the S&P market, and naturally, the crypto market was also severely impacted.

The ISM data paints a clear picture:

Inflation is back!

At the same time, the JOLT's U.S job opening report came out with even more surprising numbers, and the previous month's data also revised upward.

So understandably, the market panicked!

However, the green support band once again provided a safety net for Bitcoin.

Bitcoin has bounced off the green support band, and we believe it should head back toward the red band (as it has consistently done in the past).

However, if Bitcoin faces rejection, a retracement back to the green band may exert significant pressure on it, potentially leading to a loss of that support.

If that occurs, Bitcoin might then drop to a range between $60,000 and $82,000.

Impact on the Altcoin Market

Let's take a closer look at the impact of Bitcoin's pullback on the entire altcoin market.

The "Others.D" chart tracks the relative strength of the altcoin market, (i.e., altcoin dominance).

Historically, when Others.D falls to its multi-year support trend line, it often signals the beginning of an altseason. 

This occurred back in August, leading many strong altcoins to rally hard and produce monstrous gains.

On Tuesday, the price of Bitcoin fell sharply, causing many altcoins to retrace 10-70%.

Let’s assess how the collective altmarket responded to the crash.

Looking at the Chart below, we can see that the bull market support band (BMSB) acted as a safety net for Others.D during the crash.

We believe that the BMSB will continue to hold.

However, for the altcoin market to enter the explosive phase of the altseason, we first need to break through the multi-year resistance line above.

We are very close to decision time, and if history serves as a guide, the outcome is likely to be upward.

It's important to note that not all altcoins are created equal.

Therefore, it's essential to invest in the right coins to achieve the life changing gains.

A lot of Altcoins are now Back to their Fair Value

Funny because of the pullback, a lot of altcoins are now back to their fair value, making it a good time for dollar-cost averaging (DCA).

For example, on Wednesday, we wrote about Ai16z, emphasizing that it was in the midst of a retracement. We attempted to predict its potential bottom. Although we didn't pinpoint it precisely, we came very close.

Although we didn’t nail it exact, but we came very close.

  • We said that the bottom was already in; however, we recommended waiting for both the RSI and Stoch RSI to touch the white trend line before making a move.

  • We even went as far as predicting the exact day the rally upward we begin (See screenshot below).

How Did It Play Out?

The RSI touched the white trend line on Wednesday, but the Stoch RSI didn’t until Thursday, when the price of Ai16z was $1.43.

AI16ZUSDT Daily Chart

Ai16z hit a bottom at $1.269

True to our analysis, the market rebounded one day after reaching its low (today).

Some of our premium members have already recouped their subscription costs.

Warning: The market momentum can change at any moment, especially if Bitcoin gets rejected at the red support level. However, our premium members will be prepared if that happens and will receive real-time information about the next steps.

If you're considering joining our premium members, you might want to hurry, we'll be releasing our top altcoin picks for the rest of the crypto circle.

These are coins that we think we do tremendously this circle.

Here's the link to sign up

That's all we've got for you, see you on Monday.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.

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