Why An Even Deeper Correction Is Expected For The Crypto Market’s Hottest Altcoin

Tony "The Bull" Severino

5 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The crypto asset known as Theta was the hottest altcoin in the space during May, but false rumors of a partnership with Google led to a strong selloff.

The downside in the cryptocurrency looks to continue, as two highly accurate sell signals have triggered on weekly timeframes on both the USD and BTC trading pairs.

Theta Pumps Nearly 400% Against the Dollar in May, 350% Against Bitcoin

At the start of May to the peak of the pump, the altcoin known as Theta rallied over 360% against Bitcoin. There was a matching nearly 400% rise on the USD trading pair.

The rally was fueled by false information spreading about a partnership with Google, however, it was later revealed that the partnership was simply Theta relying on Google’s cloud services on the client-side.

While no true partnership exists, the massive surge brought back memories of the crypto hype bubble.

During that time, it wasn’t uncommon to see altcoins rally hundreds of percent against Bitcoin or the dollar.

While those days are long gone, and money won’t be as easy to come by during the next cycle, Theta’s recent explosion provides much-needed hope that a return to a crypto bull market may soon be coming.

But before any sustained bullish advance or uptrend begins, Theta is due for a stronger correction, according go a duo of highly accurate sell signals across the THETAUSD and THETABTC trading pairs.

USD & BTC Sell Signals Could Cause The Attractive Altcoin To Dump Further

Over the last month, few altcoins were discussed as highly as Theta. The asset quickly became the crypto industry’s hottest token.

But as soon as overly eager investors realized the partnership news was a non-event, a selloff cut the gains back significantly.

More downside is also very likely, given a set of sell setups signaled by the TD Sequential indicator on weekly timeframes.

The TD Sequential indicator is a market-timing tool developed by Thomas Demark. After a specific sequence of candles form, it often is a sign that a reversal or pullback is near.

The signal has called many Bitcoin and altcoin tops and bottoms over the last several years, dating back to Bitcoin’s all-time high. It’s proven that its a tool that should never be underestimated.

The 9 sell setup has appeared on both THETAUSD and THETABTC price charts, suggesting that not only is a collapse in USD value expected, but the altcoin will underperform against Bitcoin in the days ahead.

TD 9 sell signals have appeared across most cryptocurrency assets, including Bitcoin, Ethereum, Chainlink, and countless others. The crypto market’s best performer, Theta, also sharing this signal doesn’t bode well for the entire asset class.

Crypto as a whole often follows Bitcoin’s lead, and while sentiment and fundamentals have never been more bullish for Bitcoin, the asset is also facing its strongest resistance yet.

Should another crash happen in Bitcoin ahead of a clean breakout from the downtrend, a lower high could cause extreme panic and a selloff will soon follow.

Bitcoin crashing from here would carry the entire crypto market down with it, Theta included.

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.