CryptoWisdom Market Report #1 (November 9th, 2017)

little bit late, charts are older ...story from https://twitter.com/CryptoYoda1338, the man who have learnt me so much ...

What a turn of event right there!

Actually I was working on an elaborated article focused on the upcoming Segwit2x hardfork to be posted today as a public resistance to their bold attack. However this has gone extinct, and I can’t express my happiness about this turn. It shows me that resistance is not futile, and that we – as a community – have the power to withstand evil forces trying to undermine Bitcoin in order to gain power over it.

However it should be noted that withdrawing support from Segwit2x does not mean that a hardfork is impossible around next week. What makes me wonder is the fact that never in my observation career I have witnessed plans of the Elite just been abandoned. As far as i can recall these were false flags alltogether and turned into a more massive attack at a later point in time. So it is our responsibility to keep an open eye and be very aware.

For now however, markets generally profit from this situation with most ALTS being up 10% – 40%+ in 24hrs, while $BTC is generally struggling to close higher. Given the strong buy context in majority of ALT charts, this is very likely the point of return. I have been patiently waiting for this reversal for weeks now, though $ALTS got just cheaper from day to day. What we need right here right now is bullish triggers on daily charts and significant buy volume which will send prices upwards, thus triggering new buyers into the emerging market. But one thing after another, lets get a proper overview over the market as of today.

State of Market

With a market capitalization of above $205 bln and continously increasing media coverage globally, more and more investors and individuals alike are tempted to buy into this emerging market. News about countries regulating or banning cryptocurrencies, building consortiums and/or national currencies around the blockchain industry are popping out almost every day. Although many have heard about Bitcoin and Cryptocurrencies in general, many are still not willing to buy, for a variety of reasons. However I do remember, and I think we all do, that this is a common occurrence. There seems to be a chasm between being interested in Crypto, and actually buying any. The chasm is real, and it is right where we are. Once we push through that resistance, chances are we end up way higher in the very immediate future, generating incredible gains, especially within the Altcoin Market, considering that BTC is significantly higher than in the last rally of April, thus generating greater profits than ever before.

There seems to be no more ideal point to invest in Crypto than this moment, not so much due to the fact that Bitcoin is a bargain at these levels, but because the Altcoin Market is ready to go, which can easily be used as a leverage to multiply BTC holdings. Smart money is currently accumulating in very low range, being very happy about weak hands dumping their holdings into their buy walls at insanely bargain prices. If you missed the rally April or want to ride that wave again, this is your chance. I see a rapid market upheaval coming for November.

We are still early, however charts are developing, clearly hitting support in this very low context. It is the moment of maximum financial opportunity without much downside risk that generates wealth. When taking into consideration the general segment in Crypto it seems obvious we are somewhere between #Depression and #Disbelief in the Psychology Chart of Market Cycles, ready for #Hope and thus accelerated upside soon. ALTS generally retested breakout point with retracements larger than 70+%. Which ultimately means we are able to buy ALTS at real bargain prices, before going for another strong leg up, which should be stronger than the leg which began in March/April earlier this year. So lets jump into the markets.

Total Crypto Market Capitalization has been on a spree since beginning of the year, marking All Time Highs every few weeks. Currently at $205 bln Market Cap we have already broken the psychological barrier of $200 bln while BTC is trying to closer higher. However what has been missing is the similiar upmove in Total MKTCAP excluding Bitcoin, which has been lagging behind for quite some weeks with a lot of suffering for ALT holders.

However that has changed. Right after the announcement that Segwit2x hardfork has been canceled due to lack of support, many $ALTS shot right out of their range, marking remarkable gains within just 24hrs. Market Cap has triggered new Highs, thus upside is more likely than downside. Generally I expect accelerated moves in almost all $ALTS (talking solid coins with good fundamentals, not lowcap shitcoins), leading to a new record-breaking rally and new All Time Highs in all charts, until eventually both $BTC and $ALTS rise hand in hand, generating returns of unrivalled proportions for hodlers and traders alike.

Clearly Percentage of Total Market Cap Dominance has been taking a hit recently after it managed to get a second leg up, which seems to be week in comparison to the downward motion which began in March 2017 when the first $ALT rally started. It is pretty safe to assume that a downbreak from these heights will result in a second leg up, not only that, but it is even more likely that this 2nd leg will be way stronger than the first.
So as a wrap-up we have a rising & record-breaking Total Market Cap, a triggered $ALT Market Cap and a struggling Percentage of BTC Dominance. This ultimately leads to the conclusion that $ALTS are in a pretty good position to get going, while we get closer to #goldenage, which in my understanding is the point in time when both $BTC an $ALTS rise together.

What a rally, isn’t it? I really don’t want to be the naysayer, but we are quite in a dangerous altitude. There are several red flags. While that does not necessarily mean something, it is important to be conscious about it. Lets roll out the facts. $BTC triggered a strong breakout of last ATH around $1090, shooting up by more than x7 to a price of $7140 at the time of writing. This is pretty remarkable, given the time frame of the rally was just 37 weeks. When looking at the longterm chart it becomes obvious that we are due for a longer consolidation, however $BTC still remains its strength to this day. We should be open to the possibility of a larger correction for $BTC, which $ALTS will use to rally. Likely, at the top of this rally, traders will jump back into $BTC for a rally to way above $10,000. At this point this is pretty much speculation, however be aware that we have an extreme distance to all EMAs, and have failed to retest both ATH of $1090 as well as the $5000 area. Thus, I generally expect a deeper consolidation as current parabola cannot be sustained much longer. In fact, the longer the current parabola is active, the harder the crash will be eventually. Lets have a look at the weekly chart to get more clues:

From a weekly perspective things look even more alarming. Both EMA 20 and previous Highs have not been tested. Current bar is number 7 in the count, marking it the 7th consecutive rising bar on the weekly. A top formation in this altitude and context is definitely possible, which would be followed by a breakdown to at least previous Highs ($5000 area), if not lower. To be clear, I am not saying this is the end of the up rally. I am solely indicating that the risk of a proper consolidation is getting higher in this altitude, while buyers seem to be struggling to generate more ATHs. Looking at this chart, nobody can really be surprised if Bitcoin drops to lower territory in the neartime future, at least for a retest of previous high.

In the daily chart it becomes obvious that the current battle is between the current parabola vs buyers trying to push prices higher. However the large wick on yesterday’s candle tells me that there is solid resistance above $7300 which might be an indication of an exhaustion top. Again, not saying BTC will crash severely over the next weeks, but have in mind that there are justified risks at this altitude. If buyers fail to maintain the momentum, current parabola will break, thus lead to a larger consolidation to at least $5000 if not lower. However $BTC has shown in the past that it is very resilient against price drops, so I as always when it comes to crypto, take with a grain of salt.

However $BTC is not at all the focus of this report. The real focus of this writing is to make aware of the fact that $ALTS are generally ready to move higher, now and especially in the weeks to come. It is now the time to place your bets as early as possible while maintaining a lowest level of risk as possible. So lets check some charts that seem to be very promising with an outlook towards next week. Here are the Top 5 Picks to watch out for:

Top Altcoin Picks for Next Week

Disclaimer: Analysis conducted purely on Technical Reasons, not taking into account Fundamentals. Do your own Research before Investing. Statements are solely my own opinions. This is no Trading Advice.

What an opportunity for $NXT right in key buy zone at breakout point of previous rally. Although generally more volume is needed, it likely will increase in the very foreseeable future. Early entry is already triggered, however we want to make sure to have a very low downward risk. There are already buyers in the markets driving up the price, which will likely accelerate in the coming weeks. If you have been waiting for the opportunity to get some cheap bags of $NXT just before takeoff, that might indeed be your chance. Trendline is being attacked right here right now. If prices manage to close above we will likely see more upside traction soon. Therefore green box is suggested buy area. Have a close eye on this one, before it takes off. Would be a pity to let this opportunity go.

Entry: 755 – 1100 in buy zone of previous High

#2 Stellar/Lumen – $STR/$XLM

Similiar to $NXT, $STR is in key support zone of previous breakout point. We already had one first impulsion leg up on significant buy volume, indicating buyers are eager to get their bags before it takes off. After the impulsion we had a proper three-legged correction, which is exactly what you want to see in this context, marking a Higher High, then continuing to push higher. Generally expecting $STR to break both EMA 100 and 200 in the coming days, then triggering a new Higher High, making this a solid uptrend which will result in an attempted retest of ATH.

Entry: Around here, either buying dips or with accelerated move upwards. Context is given, likelihood of this trade becoming profitable within the next days is likely.

#3 Digibyte – $DGB

As in previous examples, $DGB is in buy zone of previous breakout point, looking to close higher on rising buy volume. Generally sellers seems to be exhausted and markets ready for more upside which gives us the opportunity to get some bags below 200 sats without much downside risk. Currently trying to break out of support range, more upside on accelerated buy volume is to be expected.

Entry: Below 200 sats on further upside motion with increasing buy volume

#4 Siacoin – $SC

As widely known, $DGB and $SC are famous for going hand-in-hand when it comes to price increases. One of them breaking key areas in the chart thus leads to a increased probabilities of upside in the other chart, therefore giving more overall confidence in the trade setup. Same as in previous charts we are in previous support of breakout point which significantly increases the odds for a successful reversal in this context. Buying below 100 sats would likely provide profitable returns once the rally gets started, especially with the trendline already broken. Right now we have slightly increasing buy volume which we would like to further increase and accelerate in the days to come

Entry: 50-90 sats with sufficient buy volume to increase odds of success

#5 DOGE – DOGECOIN

Although controversial within the crypto community, $DOGE remains one of the oldest coins out there with a solid community. I do believe $DOGE will have its time to shine. We do have an excellent opportunity to get some cheap bags before this thing goes off. Just think about it. We are at the same level where the previous rally started, which means we are currently in a zone which increases the likehood of successful reversals to the upside. We have solid buyer protection, which can be seen by the significant volume spike. We have not managed to generate a lower Low, instead $DOGE seems to be eager to trigger new highs and further buy momentum. Expecting $DOGE to closer significantly higher in the coming days, thus anything below 21 sats is a bargain price for the next leg up.

Entry: 15-21 sats, the lower the better. Cancel orders and buy if 21 level gets taken out on volume.

Market Outlook

Let us wrap up what is happening. We have a struggling $BTC in dangerous altitude, while $ALTS beginning to look very attractive in this low range at key support. Buy volume is already slightly increasing, while BTC percentage struggling to maintain 60%, indicating more BTC holders are switching to $ALTS. I do believe this will be a wonderful week for $ALTS, thus positioning early is advised.

Of course we will follow these trades in Slack more in-depth. Oh yeah, thats right.
I am happy to announce that I am fully back in business by tomorrow for another green seasons of $ALTS. If you liked this first of many market reports – which I think is a great way of keeping track of the market – you will be pleased to hear that it will be published on a weekly basis, acting as preparation for the trading week ahead, while trades are being followed in Slack. I will be available generally in the mornings, posting charts and setups that provide low risk entries while having very profitable prospects for the intermediate future. For the loyal crowds of Jedi’s that have stayed in Slack during the last months while i was recovering and reflecting, we will be starting tomorrow on a free basis, while opening further seats (if available) for Twitter in the coming days/weeks.

For now I wish you a wonderful 2x segwit cancellation and a great weekend of trading. See you soon!

Stay sharp & Best regards,

CryptoYoda1338

Disclaimer: This is just a first report, acting as experiment. The shape and content of this report may vary in the future. Charts and prices may have changed while writing the report.

source
http://cryptowisdom.io/cryptowisdom-market-report-1-2/