Thought about the ongoing "altseason" :) Are we going to moon forever?

We have been seeing a decline in the BTC Dominance gradually, and many of the alts are popping off, giving massive returns, with many people even comparing this with the 2017 Bull run. But will it be different this time?

Disclaimer: I'm not implying that "This is what will happen", unlike most of the so called "professional CT Traders" who will also tell you "See I told ya!" and all stuff.
I'd rather like to emphasize on the fact that these are not predictions, but probabilities on what MAY happen to the market, and not what WILL happen to the market.

Have a look at the crazy prediction I covered a month back :)

Call me crazy, but I've already pinned it on my twitter account! even though I'll be happy if I'm proven wrong as well:)

As everyone is getting Euphoric about the current Alt cycle, lets have an analysis on this to check on the charts.

Image below is of the total Altcoin Marketcap:

Chart: Total2, 1D

Link: https://www.tradingview.com/x/o5ykg9S1/

If you look at the chart, you can see it did a small retest of the previous long term support (I extended from 2015. Let's zoom it out a bit.

Chart: Total2, 1W

Link: https://www.tradingview.com/x/UviNPZH5/

Currently, as everyone is screaming for an altseason, and as everyone is getting euphoric, are we going up forever?

Lets reevaluate the market sentiments. The answer is, well, sadly no. Even though we are going up in the long run, the path to the moon will not be straight.

Currently, we are seeing it has retested the previous resistance, and the market should logically correct a little bit on the longer timeframe in order to resume the bull later on, again.

As per sentiments, they say,
"Buy when everyone is Fearful and sell when everyone is Greedy" -Famous quotes from legendary investor Warren Buffet.

So. Are we seeing greed in the market? Ans: Yes, especially after a lot of altcoins popped up and gave crazy returns, ERD, LINK, XTZ, ADA, and almost all the DeFi tokens gave very solid returns and people are waking up from their sleep, to search for "the next big altcoin".

At the time of writing, we can even BLZ giving an impressive 88% return.

Its really funny how the market works,
In simple terms, "Rinse and Repeat" 😃

Yet people fall for the same traps over and over again.

Another point to consider: While the Pandemic has taken a toll on the economy of almost the whole world, the so called "money printing spree" isnt letting the market behave like it should have otherwise.

We have seen a fake "V" shaped recovery, which looks pretty much unsustainable. This can be "one last pump before the dump" when it comes to traditional markets. I might be wrong again, but there can be two scenarios here: (I'll cover the charts of Traditional markets later on, in future articles, though I came here primarily to chart Cryptocurrencies, but I feel I should do that as well. And I'll also chart Bullion, like Gold/Silver, and other precious metals like Platinum, Palladium, once I get some more time)

So the Two scenarios we can expect:

The Stock market keeps pumping, fueled by the money printing (BRrrrrrrrr) -> This will lead to hyperinflation, which will pump up prices of almost everything. Money will lose its value over time, and we may see a situation that many countries around the world are already facing (For example: Lebanon, Venezuela, Zimbabwe) This will massively fuel the price of Gold/Silver, and also Cryptos as well. But again, Whats the point of becoming a worthless millionaire (or billionaire) ? :)
The money printing fails, and the stock market enters into a deep slumber. -> This will trigger, what we can also call as Depression. The last time a depression happened was in the 1930s, and it lasted for almost 10 years because of shortage of money, and a lot of other factors. Check it out if you are interested:
1. Wikipedia article on 1930s depression
2. History.com's article on 1930s Depression

(I've shared for reference)

So, my take:

Nothing. A Hyperinflation/Depression wont come in a few weeks or months. It will take time. Just trade safe, and of course if you are rational enough, you wont buy a coin which went up by some 80% in a few hours right? Your rational mind will ask you to wait for sometime before entering :)

Stay tuned for an interesting article on the overall crypto markets, and a brief comparison with Gold/stock markets, which I'll be posting by end of this week! 😉

If you liked this article, consider giving an upvote to support me in writing more quality content in the future :)

Posted Using LeoFinance