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Trololo Chart and the Total Crypto Market Capitalization

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@pantera1
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In previous years, I was trading frequently. I also had invested most of my free time into charting, trying to clear the noise from the valid information. I have now stopped trading for two years, but I still try to recognize the real TA from the mumbo jumbo.

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Back in 2017, I was looking for charts and predictions from traders in previous years and this was how I stumbled upon the Trololo chart. It is a Bitcoin price prediction that was first published on bitcointalk in 2014 (link).

This chart was predicting the price of Bitcoin at $10,000 with an exact date set! I thought immediately: Right! This proves nothing. Although, it just only missed by just one day, if I remember correctly.

Now, for the last part of this chart, its last prediction seems to have failed, but can we definitely say so?

The Trololo Chart works 100% but did not take into account other Cryptocurrencies

I published at Noise.Cash a chart that gives me confidence during times of confusion. This is based on the Trololo chart, although adapted for the total crypto market cap. It was created by AxP (Twitter: @HeyAxP).

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One of the best traders I've ever had the pleasure to meet is ZEEONE. He has acquired deep knowledge when it comes to charting and always eager to shed light when difficult situations appear.

He published his thoughts while examining the Colin Talks Crypto index: CBBI and pointed to a great argument:

BTC hasn't yet peaked and the rest of the market will follow or does it mean the market has peaked and is less reliant on the dominance of BTC? Time will tell.

-ZEEONE, Source: Noise.Cash.

We recognize the fact that while BTC dominance may be weakening, this doesn't also mean that the bull run has ended. When looking at the final quarter of 2017, it looks like an identical formation with a retest of the main trend and good odds at reaching the upper band by the end of the year. If history repeats itself, the total market cap of cryptocurrencies will reach close to $10 trillion. And history has this tendency.

For the current market conditions with $120 Billion in stablecoins, Ethereum having reached “godlike” status as an asset, and all the cryptocurrency market booming, BTC dominance is dropping rapidly. It is already at 40% and reaching the previous low of January 2018.

And this is a good thing since back in 2014 there was very limited innovation in the field. When the Trololo chart was created, it didn’t consider stablecoins or the rise of cryptocurrencies as a new industry.

Ethereum was just in the making and many considered XRP as the only potential candidate, although even that was highly unlikely. BTC’s dominance was at absolute levels (~95%).

In Conclusion

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The charts often explain too many details we cannot immediately assimilate.

The fact that BTC dominance is weakening is something too obvious to everybody. Although, the fact that dominance is weakening but the total market cap is rising implies that there will be changes perhaps sooner than we thought.

As BTC keeps becoming less “responsible” for price swings of all cryptocurrencies, this implies maturity in this market.

There are better odds with this structure for the whole crypto market to keep rising. One thing is certain, we are reaching close to the beginning of the parabolic trend.

BTC will also rise and probably reach $100k about four or five months after the Trololo chart suggested, but will also hold less significance in market cap terms, allowing the space to grow organically.

Of course, a devastating crash will follow any parabolic trend.

Originally published at Hive via Leo.Finance

Writing on the following networks:

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