Alts Season is over... King's Landing in ruins!

2021年5月23日

The bloodbath was brutal over these past few days, and the Alts were the biggest losers where many fundamentally solid large caps lost more than 70% of its value in 72 hours.

What are the readings?
1) Total Market Cap lost 50% of its value
2) Alts.D lost 50% of its value too
3) BTC.D is increasing on the expense of Alts.D
4) Alts.D closed below the 100D EMA already, and now it's even trending below the 50 3D EMA.
5) We are few hours away from the weekly candle to close, regardless of how it closes... Alts season is over!
6) Is it bear market already? Next week will answer this question.

So what really happened? My simple interpretation away from the chaos is the following:
1) Big whales cashed out BTC early in late April as we started to see BTC reaching the top.
2) FUD took over the entire market last week
3) More whales cashed out Alts in fear of a crashing market
4) Everybody else panicked and sold at loss... and here we are walking through the ruins of King's Landing.

So where do we go from here:
1) Bitcoin is expected to bounce from here. We might have a relief rally next week.
2) Alts will slowly recover in USD value, but will take a long time to recover vs. BTC.