Crypto Altcoins Risk Dangerous Collapse As Three Year Triangle Resolves

Tony "The Bull" Severino

5 years ago

2 mins read

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During the crypto hype bubble that made Bitcoin a household name, altcoins exploded to all-time highs and generated life-changing wealth for early investors.

Since then, there’s been a three-year downward trajectory that is about to resolve further to the downside, putting altcoins at serious risk of extinction.

Bitcoin Halving Is Crushing Already Battered Crypto Assets Further

Bitcoin’s halving is here, and interest is returning to the cryptocurrency space. However, that interest is almost entirely going into Bitcoin, leaving altcoins like Etheruem XRP, and others in its dust.

Capital is pouring out of alts and into BTC in hopes that the Bitcoin halving causes prices to spike in the days ahead.

The scramble to buy more Bitcoin has caused altcoin investors to dump their holdings in exchange for BTC. This is evident across nearly all altcoins on their BTC trading pairs, which have recently fallen to new bear market lows.

The total altcoin aggregated market cap, sans Bitcoin, when paired with BTCUSD on TradingView, provides a clear visual look at the health altcoins.

A massive, three-year-long pattern has formed on the metric’s chart, potentially signaling a dangerous collapse in alts that could take them back to prices from 2016.

Altcoins Could Face Certain Doom If Weekly Closes Outside of Three-Year Triangle

The total altcoin market cap paired against BTC acts as an inverse Bitcoin dominance chart, providing a better look at the balance between alts and Bitcoin.

During the explosive pump to all-time high in late 2017 and early 2018, Bitcoin dominance fell to the lowest point ever. Since then, it’s been on an upward trend that hasn’t yet stopped.

A reversal appeared to be taking place, but the most recent price action has caused a massive symmetrical triangle to form.

Interest in Bitcoin’s halving has caused altcoin holders to purge their remaining holdings in exchange for Bitcoin. The change in the flow of money has caused alts to break down from the triangle on weekly timeframes.

If the weekly candle closes below this line, altcoins could be in danger of having their valuations drop to pre-2017 levels, with many reaching close to zero.

The one savior for alts is the fact that it was the last Bitcoin halving that caused the very first major altcoin season, and is what set Bitcoin dominance on a downward trajectory for the first time.

If it happens again, this latest breakdown is just a bear trap before altcoins take off.

Featured image from Pixabay

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.