YCC Crypto Alpha #35
Our latest community alpha & portfolio updates.
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These posts are your gateway to our latest market alpha, top coins to watch, and community updates. They also keep our busy Patrons happy and informed.
This issue covers:
Latest market outlook
Top 3 altcoins I’m watching today
YCC portfolio updates
Market tip of the week
Latest market outlook
TLDR: Bitcoin re-tested the support at 58k which appears weak. If this key level falls, expect a retest of recent lows. The bullish scenario activates only if BTC moves above 64k.
Bitcoin is forming a pennant which will resolve by the end of next week. This formation indicates a continuation of the existing trend. That means bears have the upper hand. If they break the support at 58k, then expect the lows around 50k to be revisited.
The current price action favors sellers and next week appears decisive on where the market will be headed. If buyers somehow manage to break above the pennant and challenge the resistance at 64k, then optimism may return.
Most altcoins will mirror the market leaders, but I have identified three altcoins which give a strong signal that they could be different.
Top 3 altcoins I’m watching today
Navigating the current market is extremely difficult, particularly for altcoins. Nevertheless, a careful analysis of the price action shows that a few altcoins show promise.
Before I give you my top 3 altcoins and rationale behind it, I suggest you do the following check on any coin that interests you:
Open its chart on TradingView (use my referral)
Add the MACD indicator
Change the timeframe to two weeks
Double click on any empty part of the MACD indicator window to make it full screen. If the moving averages did a bearish cross recently my advice is to avoid that coin. Here is Solana as an example which I analyze below.
What the MACD indicator shows is that momentum is bearish or has recently shifted bearish for Solana. As a lagging indicator, that also means it can take months for it to reverse on such a high timeframe - i.e. two-weeks.
Just look at the last time this happened to Solana. It was 2022 and the same indicator needed over a year to make a bullish cross after that. You do not buy a bearish cross, you buy a bullish cross! The histogram is also making lower lows.
No indicator is perfect, but in terms of probability, buying any altcoin with a two-week MACD that looks like this is probably a bad investment right now.
Having said that, lets look at three altcoins that don’t look like this.
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