Reduce Bitcoin transactions
Binance Research, the market research department of the Binance exchange, has announced The March 6 report showed that the altcoin market will prosper again.
The dominance rate of Bitcoin trading volume dropped from 40% to 27% in February, recognized by researchers as one of the strongest changes compared to the previous month.
“If this trend continues, it does shows market participants crave thirsty the more altcoins”.
ETH Traders are interested
Moreover, interest in ETH trading increased sharply, with the total monthly volume increasing by more than 158.6%. The average daily total on-site transaction volume also increased by 69% compared to January. In general, February is a volatile month for the cryptocurrency market:
“The leading event of the month is ETHDenver, with many hackathon projects on ETH build different projects. Many of them emphasize the transformation ETH to Proof-of-Stake and the ability of smart contracts to build is overlapping”.
ETH seems to be enjoying the new interest of traders and investors. As previously reported, whales are accumulating ETH, in which the percentage of supply controlled by the top 100 wallets reaches nearly 25%.
The altcoin market forms a descending triangle
Many altcoins have exploded in the new year, forming insane bullish moves that lead to over 100% ROI in many cases.
In fact, there are times when alt works better than BTC, leading some industry analysts to conclude that the alt season is near. This concept is often used to refer to the length of time when alt beat BTC with very high profits.
And meanwhile, it's undeniable that altcoins are looking extremely bullish, even showing the sharpest increase in trading volume in the entire history but the altcoin market has formed an accurate charting pattern. and the most dangerous: descending triangle.
On weekly time frames, this is clearly visible descending triangle lasted 2 years. The descending triangle may be bullish, but still support break downside.
Such a huge descending triangle breakdown will have a devastating impact on the altcoin space and the larger cryptocurrency market.
The goal is measured by taking the widest point of the triangle and using it as the breakout point.
In the altcoin / BTC chart below, such a goal will wipe out the growth in nearly half a decade of the altcoin market. Because the chart shows that most of the capital lost from altcoins will be poured directly into the leading cryptocurrency Bitcoin by market capitalization.
Further reinforcing the view for potential slump is indicator Gann Double Band has just released the first short signal in altcoin / BTC chart history on weekly time frames.
Break down Bitcoin in the past is a typical example about the potential risk
To prove the severity of these patterns and signals, Bitcoin over the past two years has formed two main descending triangles, with each breakdown to a new low.
In the chart below, each triangle shows a dangerous move to bring the price to a new low, providing an example of what would happen to altcoins if the model did turn out that way.
The same Gann Double Band signal on the monthly Bitcoin chart emits 2 short signals throughout the bear market, with each signal occurring at the peak hitting the upper trend line of the descending triangle pattern.
As for why altcoins are at risk, aside from patterns and signals, speculative assets are one of the riskiest assets. And with the chaos of the market as well as the fear of Corona viruses that confuse investors, risky assets like alt may be the first to be dumped in a massive panic sell-off.
This model can predict a worrying situation in advance, so plan accordingly.
You can see the price of virtual currency here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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