Capable of observing the market sentiment of the cryptocurrency market
The relative status of BTC and altcoins
How it works: 1. The general uptrend process of the cryptocurrency market is BTC → ETH → high-cap altcoins → low-cap altcoins. When funds cannot push up BTC's market cap, funds gradually flow into smaller-cap altcoins until the upward trend ends. 2. Select ETH as the representative of altcoins, and understand the sentiment and current stage 3. Mathematical principle : divide the price of ETH by the price of BTC, and then apply it to the RSI formula .
How to use it: 1. Similar to the RSI indicator , when CMS enters the overbought zone, it represents an active altcoin market, a passionate market sentiment , and the end of the uptrend. 2. When CMS enters the oversold zone, it indicates the leading stage of BTC in the rising trend or the capital flow back to BTC in the declining process . 3. If CMS is at a low level, long positions should focus on altcoins, and short positions should focus on BTC, and vice versa.