- June 15, 2020
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
Have you looked at the Crypto Total Market Cap through the lens of stock market like Nasdaq? Why pick Nasdaq for this particular comparison? Simple. The stronget tech index of the world is the perfect fit for the digital currency market
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For the purpose of this study, the Crypto Market Cap is illustrated on the 1W chart while the Nasdaq on the 1M chart. It makes sense to do so as cryptocurrency is a much ‘younger’ market and as it is smaller than Nasdaq, the pace is much faster than that of a traditional stock index.
** Similarities of the Crypto Market Cap and Nasdaq **
– Both have started off with a very strong parabolic rally based on euphoria of a robust future position. The MA20 supported this parabola.
– One the MA20 broke, both started a sharp sell-off based on panic. This was fueled by the simple fact that the masses of investors who bought at the top were left hanging selling lower and lower in loss as the sell-off extended.
– An MA20/50 Bearish Cross was formed on both that led to the Cycle Bottom.
– The Cycle Bottom was made on the MA200.
– The MA200 supported a mini rally forming an MA20/50 Bullish Cross halfway.
– This mini rally made a top on the 0.382 Fibonacci Retracement level and based on disbelief it pulled back again.
– An MA20/50 Bearish cross was formed which led to a second MA200 touch but was a Higher Low (Higher from the Cycle Bottom).
Nasdaq then formed a new MA20/50 Bullish Cross and started a new Bull Phase. The Crypto Total Market Cap is in the process of completing this MA20/50 Bullish Cross. Does this mean that a new Bull Phase will be initiated? What do you think? Feel free to share your work and let me know in the comments section!
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