IN TODAY’S REPORT
What I cover: TECHNICAL ANALYSIS EDITION. Altcoins may need to get killed before a sustained rally can begin.
Slow Steady Bleed
BNB: 4 consecutive weeks lower.
DOGE: 5 consecutive weeks lower.
SUI: 6 consecutive weeks lower.
Recent altcoin performance has been a slow, steady bleed.
So are alts now oversold? Perhaps by some measures.
But many altcoin rallies begin when the REKTelligence Stretch % indicator hits -25% or lower. With the Bottom 90% Dominance chart showing only -11% stretched, we’re not yet close to that level.
CRYPTO TOTAL MARKET CAP Excluding Top 10 Dominance (OTHERS.D). Weekly Chart.
As I wrote about within the past few months, prior bull runs in alts have also been accompanied by global liquidity trending up. Why? Because more money in the system means more money seeking a return. When interest rates fall — something eventually on the horizon — most investors move further out on the risk curve into potential payoff opportunities (i.e., tech stocks, altcoins) and away from safer yield-oriented plays.
For now, the Bottom 90% Dominance chart continues its relentless march south, recently hitting a multi-year low. In fact, excluding the top 10 crypto assets, all other coins and tokens only amount to about 7% of all crypto assets. Read that again. Thousands and thousands of alts only amount to a single digit percentage.
But their time will come, though possibly only once alts get killed, stretched to lower levels.
Until next time…
peace_love_crypto
-DB
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