ALTCOIN ARE CRASHING BEFORE THE NEXT PUMP IN 2021: Bitcoin’s Fault
So in todays, video well have a look at when this pain may end and also some of the strength thats leading into bitcoin and how this is happening so make sure youve hit that, like button subscribe to the channel its your home of opium free crypto content, My name is jason. Lets dive in first up. Ive got total three here, so this is a crypto currency, total market cap, excluding bitcoin and ethereum. This basically just gives us a price range or a total amount of money. Thats invested into all of the altcoins. Of course, except bitcoin and ethereum now ive got the chart here and we can see that were in a type of double top, nearly right on the exact amount that it hit at the peak in may im bringing this up, because this is the resistance level that We want to overtake and funnily enough it comes up to a pretty close psychological level of one trillion dollars. So at the moment, the market for all the alt coins except bitcoin and ethereum, is around 850 billion, so the bleed that weve seen has come off. This double top, but my view, of course, is that i dont see the old coins falling all the way back to these lows just yet. I think this was a solid low put in it looks like a nice resistance. Well support resistance bounce. This was the previous resistance level back in january of 2018, when the last major altcoin season happened and im talking about in the last cycle.
This one was huge. It was bigger than what i have seen in this current run and if we break through this double top, we do have the potential of getting something big again, because when markets break double tops its a signal for bigger things to come. So i think we just need some more time to wind up, and then this leads into bitcoins strength, which it will probably see during this quarter four period, its something weve been building up to it, doesnt mean that bitcoin has to explode from october. First to december 31st, it just means that this period of the market is generally bitcoins show and its definitely showing us that in the markets right now now, looking at bitcoin and whether its bullish or bearish sure were getting to all time highs. But there are still a lot of bears out there saying that we could be in for a bull trap and well get this major correction and take out the 30k lows, and while that is a possibility, it doesnt seem likely at this point in time. Now there is an old phrase in traditional markets, which is wall of worry its about climbing the wall of worry all weve, seen through this period from the lows in may and june of 2021 is a wall of worry weve seen china flood time and time again, Weve seen the u.s come out to try and ban cryptocurrencies or put some sort of regulation on them.
Weve seen liquidations that have just wiped markets out by 10, 20 30 percent very very quickly – and this is an old saying – this is called a wall of worry markets tend to rise, while people are still scared and then once it gets to a final stage. In the market, where all the excitement is the smallest gains are made at that point, but they look the biggest in a dollar value. You can see this on things like nasdaq, which is a traditional market and, of course, the s p 500 as well. Basically, we had worries in the entire world the global economy, from the gfc crashes of 2008. Now the market has been climbing ever since the lows of 2008 for the nasdaq, which is the technology sector in the us, and its just been bad news after bad news. After bad news for the entire world now, im not saying whats going on in the world is great, were just looking at the finances here and the finances and where the money is flowing to and are people making money and the markets theyve all been going up. Nasdaq is 1400 up on a wall of worry. The s. P is up from early 2009 to currently at 4, 300 were up several hundred percent on that as well. So the wall of worry happens in all markets and were definitely seeing that on bitcoin as well. Weve had the wall of worry weve been climbing through these last several months and, of course, its cryptocurrency.
It happens on a shorter time frame. You could even argue that maybe that was from the lows of 2018 december 2018. Weve been climbing since that point as well, and there was a lot of fear in the markets through 2018 to 2019 and early 2020, of course, with the virus scare. So the market has been climbing on that, and the main thing im talking about here is that sure well well, probably see some corrections, maybe 20 again 30, as we get closer to these highs and people being fearful of bear markets, uh coming and those sorts of Things, but at the moment it still looks like were climbing on this wall of worry, so weve got to position ourselves ready for this next stage of the bull market and, of course, in my opinion, were looking at bitcoin, taking the reins at the moment and then Leading into some sort of altcoin rally, speaking of all coins and trading, i just posted all of my crypto trades in patreon. So if you guys are interested theres, 35 places left, the link is in the top of the video description, so go and check that out and ill be posting that, on a monthly basis of what im doing whether im buying selling, how my portfolio sits. All the details are there, you can check it out. This is just a month by month, thing cancel any time, but there is a lot of value in there as well lets move on and have a look at more to do with cryptocurrencies, and that comes in the form of bitcoin dominance.
So it looks kind of messy at the moment, so im going to get rid of this green line here and just put the blue line for october now. This is where were currently where we currently are. This is october. Ive got a blue line here, and each of these vertical blue lines is october, and i noticed something pretty similar here. If we zoom right into where we begin, we have a rise in october. Basically, a bit of a correction here market can either go sideways or trend down a little bit after that october october period, so we got october in 2015 we had a bit of a move up, so this move started from around june weve gone up into november, And then we correct again we go down so as bitcoin goes down, more money flows back out into altcoins october comes again. So, from july august september october we have a little bit of a peak october november and then money flows out into altcoins again and in the case of 2017, that was a huge outflow. This was from 96 bitcoin dominance, so 96 of the money in the entire space was in bitcoin and that flowed out into altcoins all the way down to 49 thats a lot of money going out into altcoins. I dont think well see something like that. Ever again. I could be wrong, but because of where the market started from its just natural that were not going to see those sorts of flows out into altcoins little different altcoins will pop off, but theyre going to be harder to find as the market progresses 2017 october, we Had the rally this was uh bitcoins time to shine again late 2017 october november december into that peak and then altcoin season december january and february.
We had the reversal, and this goes into a bear market, which means a lot of the money flows back into bitcoin. During that period, because its less risky, we see october a little bit of a correction, a little bit of a move up but again were in a different market period. Here, market flows out after that period october a little bit different here, just a tiny move before the market flows into altcoins. Again, 2020 bitcoin takes the show october november december. Here we are into january of 2021 and the altcoins take the show primarily ethereum and cryptos in the top ten, because most of the money has to go into a few of these cryptos to show any sort of reading on a dominance chart. You know a tiny fraction of bitcoin could flow into something thats ranked 400th or 1000th on the crypto currency market caps and its not really going to show up on the bitcoin dominant. So those coins could get 100x thousand x, but youre not really going to see it here. This is just showing the major cryptos, so all the major cryptos are going to affect this more so so we get january february march april and then may money flows out of bitcoin all into the alts. Bitcoin has a little bit of a move up and weve. Come back down and now were seeing that move again into october. If we look at history, it shows around that october november december period.
Bitcoin gets the money, it pulls the money back in. It brings more money into the space and then people look for other assets to speculate on and the money flows out into those altcoins and we get that big altcoin pump. So during this period of bitcoin dominance, rising, which is what were seeing on the chart here, were up to 46 percent. Now it is natural to see altcoins crash and bleed, and all of that money coming out of volts into bitcoin or into stable coins waiting for the next play on the altcoin season, and to back this up, we can see it on ethereum btc chart. You can see – eth has been bleeding out against bitcoin at the moment, were down to 6.1 percent thats the value of ether against bitcoin. So this is bleeding out, but weve seen that time and time again through ethereums history, and then it just surges back later. In that piece, it takes over the dominance of bitcoin or takes some of the dominance back from bitcoin, and that pushes the price up of ether as well in ada were also seeing that happen again and ada is dropping at the moment against bitcoin value. So when this all comes back its possible, that ada is going to increase more than ethereum but of course, ethereums also going to increase, because itll start to regain some of that dominance after bitcoin has had its time to shine. And finally, you can see it on coingecko when you jump over here and we change the us dollar to where it normally sits to bitcoin itll, just reconfigure all of the data here to show btc values.
So you can see all of these bleeding out against bitcoin. Of course, shibarino is the rare occasion here its up against bitcoin at the moment, but the majority of the top hundred are all down ftms, having a little bit of a day in the spotlight. Again, a few percent up against bitcoin, which shows its strength uh at the moment. At this point in time, it means its going up against its usd value and its bitcoin value thats. What you want to have in your portfolio, but you can see that most of these here have been bleeding out, and you just want to make sure youre with cryptocurrencies, which are sitting at least at their support levels or in a stronger position than others. You can see the likes of doge, which has begun to bleed out a lot more and its just not getting those bounces back at the moment, so make sure you check your portfolios, check your positions at the moment leading into this next stage of the bull market. I think its going to be super massive. I have my superannuation fund into cryptocurrency, which you can see on instagram, so you can follow the link down below on instagram i post on there very regularly with the amount of cash that uh well, the the the profits that are in the super fund. The retirement fund and for aussies thats, where im leading over to if you i wanted to get your super fund into cryptocurrency check out new brighton capital link to this, is down below 150 dollars.
Free credit when you sign up using posino as a referral code. So thats to get your super money into cryptocurrency, its a free 20 minute phone consultation and dont forget patreon as well. 35 left trades are all over there at the moment, all nice fresh and live q and as coming up this month, catch you guys at the next video dont forget to like share subscribe.