I was analyzing the Basic Atention Token (BAT) cryptocurrency and was able to find a relationship with countless other altcoins I have on my radar - including NANO that made a recent post talking about the difficulty it is having in raising its price - this made me look for learn more about what was happening to the market through news (something I rarely do, because I think news does not interfere with the majority trend of the chart) and saw that one conclusion is consensus in the community: altcoins are "dying" while bitcoin is flying. I will show my point of view on the situation by analyzing some altcoins.
First of all I think it's important to say that time is very important for a well-founded analysis since half of the graph comes down to this and the confluences between time and price in the altcoin market at the moment is quite different from what it should be, setting the anomaly that I will try to standardize in this article.
Litecoin daily chart
Here we can see the 100-period moving average (yellow) crossing the 200-period moving average (red) giving signals that the market is up and then down.
In this chart there is a relation of time and price per finonacci. Dotted lines are the symmetries that should be sought by the chart in the current upswing (note that the chart failed to reach the expected $ 180 minimum peaking at $ 140).
The blue line indicates the point 0.618 in the fibonacci retracement where the price has already hit and has risen, the price may have found in that zone the support needed to rise again.
Using fibonacci time tools it is possible to identify a specific point where both tools coincide, showing a possible market reaction point.
Concluding that the correction has already receded sufficiently in time and price, the markup stipulated by the tools will be crucial in telling us if Litecoin will continue to fall or if there will be a trend reversal. If this reversal happens the next targets (by symmetry) to be met by Litecoin are: $ 182, $ 253 and $ 375.
Ethereum daily chart
Note the same pattern of moving averages in the ethereum chart.
In the time projections here we can see the same period expected for a graphical reaction (early October), again the correction has reached enough price levels for it to rise again and there is a relationship between the tools. If the price actually goes back up the next levels by symmetry to the price stop will be $ 513 and $ 827, the fibonacci extension points similarly if wave 3 is normal or extended.
Ripple daily chart
Ripple meets the same pattern as the others, having its moving averages crossed twice, its confluence of time pointing to the beginning of October but with some details that are lacking. Recently the XRP has lost significant support and has fallen below the pump's initial value, having its elliot wave count invalidated, its future may take a totally different path from ETH and LTC.
Basic Attention Token daily chart
Since BAT was the chart that led me to analyze the others above, nothing fairer than to bring an analysis about it as well. Here we can see the same moving average pattern seen in the previous graphs.
Note that there is symmetry linking the start point of the correction with the current movement and the bottom 0.17 linking them. With that we would have had the next pump take us to a symmetrical value of $ 0.66, but the time / price ratio has not remained similar given that the current price correction is coming close to twice as long as the price rise, This makes us look at other indicators, such as the volume that, despite being larger than the previous bull run, has been falling considerably after the top end near $ 0.50. The situation of the BAT may be close to an outcome in early October like the other charts, but remains quite uncertain.
While much is being said about bitcoin's increased market capitalization, little is said about its relationship to other cryptocurrencies (read this interesting article about the relationship of bitcoin to other cryptocurrencies). The question I want to ask with this article is: are altcoins really dying or are they independent enough to have their own pace of evolution? Let's see this soon (just a tease).
According to my analysis we are close to a confluence of time that will be responsible for a big movement in the market, whether this will be positive or not for the altcoins only time will tell us.
Thank you for reading :D
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