ALTCOINS ARE ON THE BRINK! (BE CAREFUL!)

My Financial Friend

Introduction to the Market Discussion

The conversation begins with an introduction to the current state of the crypto market, noting the breakout of certain altcoins and the potential for further movement in the market. The discussion involves Sam and Tyler Hill, who are analyzing the market trends and possible future directions.

Analysis of the Altcoin Market

  • Total Three Breakout: The total market cap of all cryptos minus Bitcoin and Ethereum (Total Three) has broken out, indicating a potential upside for the altcoin market.
  • Altcoin Performance: Various altcoins like Sweet, Jasme, and others are showing significant growth, with Sweet being a particular example of outperforming the market.

Concerns and Considerations

  • Structure and Sustainability: Despite the breakout, there are concerns about the structure of the market and whether the breakout is sustainable. Factors like the performance of Bitcoin and Ethereum, which are still within certain ranges, play a crucial role in determining the overall health of the crypto market.
  • Volatility: Newer cryptos, like Sweet, are noted for their high volatility, with significant percentage drops and rises over short periods.

Technical Analysis of Sweet

  • Ascending Channel: Sweet is creating an ascending channel, which has a high chance (80-90%) of breaking to the downside. This technical analysis suggests that while Sweet may continue to rise, there's a significant risk of a downturn.
  • Profit Taking: Tyler mentions taking profit from Sweet, citing the risk of a potential downturn and the strategy of rotating profits into other cryptos that have not yet pumped.

Impact of Trump's Inauguration

  • Bullish Catalyst: The discussion touches on whether Trump's inauguration will be a bullish catalyst for the crypto market, with the possibility of a strategic Bitcoin reserve being discussed.
  • Market Reaction: There's speculation about how the market will react, with possibilities ranging from a pre-emptive pump before the inauguration to a potential dump if expectations are not met.

Advice and Conclusion

  • Strategy and Caution: The final advice is to be careful, make a strategy, and stick to it. The market is expected to become emotional, especially with the upcoming inauguration and potential announcements.
  • Low Leverage Trades: It's suggested to consider low leverage trades or no leverage trades until the market clarifies its structure, emphasizing the importance of caution in volatile times.