The Chop
The Market Tale (Sep 28, 2019)
“Nothing to trade here,” said Bull, looking at hourly chart. “On one hand, the downtrend has been stopped at $7736. On another hand, the uptrend hasn’t started yet, since we’re far from $9268. The price is just hovering between support and resistance.”
“When BTC starts ranging, altcoins start rising,” mentioned Bear. Even though he wasn’t keen to buy the assets without fundamental use cases, he still valued their speculative potential. Besides, he always remembered that some people genuinely believed in those projects: maybe because those people didn’t understand how business works, and that it needs customers to survive.
“Well, we’ve got some players today,” said Bull.
“Some of those alts have clearly exited their accumulation ranges,” remarked Bear.
“What do you mean?”
“Look at the red lines on my chart. They mark the highest prices achieved recently. Since those price levels have been breached upwards, we can assume an uptrend: higher highs, higher lows.”
“Don’t you want to say that alts have… bottomed?”
“The chart says so.”
“I can’t believe it.”
“That’s how it always feels, and that’s why this stage is called “disbelief”. The volume is still low — most people think the alts are still dead. Those people will buy at 2x-5x from lows. If you don’t want to become one of those, you’d better buy now.”
“I’m scared.”
“Me too. Tight stop-loss = Good sleep.”
“What about the shakeout wicks?”
“They might come — or they might not. Better take the opportunity while it exists. Besides, we already had a shakeout then BTC dumped. The ALTBTC ratios followed, only to spring back.”
“I’ll consider buying alts.”
“Consider fast —if that’s the altseason, the price won’t stay low for long.”
Previous episode: The Aftermath
Next episode: The Slow Descent
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