1/ A big part of trading alts is positioning for themes/cycles. Some examples:
- large cap vs mid vs small
- event driven > coinbase adds
- psychological > low sat coins or sector or exchange specific
In this thread I'll explain my approach to positioning for market cap themes.
- large cap vs mid vs small
- event driven > coinbase adds
- psychological > low sat coins or sector or exchange specific
In this thread I'll explain my approach to positioning for market cap themes.
2/ You have probably noticed that for the last 5 days large cap alts have been stealing most of the attention, volume and gains.
Coins like $XRP and $BCH doing the best. $ADA and others are close behind.
See here:
Coins like $XRP and $BCH doing the best. $ADA and others are close behind.
See here:
3/ Typically when alts start moving up it follows a pattern.
Large caps first > Mid caps > Small caps.
It could be due to money/liquidity flowing to easiest to access coins first. It could be due to risk tolerance increasing or search for more yield. Probably a combo of both.
Large caps first > Mid caps > Small caps.
It could be due to money/liquidity flowing to easiest to access coins first. It could be due to risk tolerance increasing or search for more yield. Probably a combo of both.
4/The current move for large caps isn't the first time this has happened recently. Alts have been moving up for nearly 2 months now
The first coins to move when *most* alts bottomed on Sept 12 were large caps
$ADA $TRX $XRP were a few
more on that here:
The first coins to move when *most* alts bottomed on Sept 12 were large caps
$ADA $TRX $XRP were a few
more on that here:
5/ Immediately after the initial push in large caps during September, mid & smaller caps stole the show by having the biggest gains.
Whether it was Binance coins or Idex coins, they moved while large caps were stagnant/dipped.
more on that here:
Whether it was Binance coins or Idex coins, they moved while large caps were stagnant/dipped.
more on that here:
6/ All alts are highly correlated so they do typically move together, but groups/themes within will outperform while others slump.
Since total crypto market cap has been stagnant - this is emphasized. With no new money coming in it's the same money rotating.
Since total crypto market cap has been stagnant - this is emphasized. With no new money coming in it's the same money rotating.
7/ Having an understanding of what's happening in the macro landscape, and thinking big picture outside of individual chart setup you can see this
I noticed it and shared my thoughts about why I thought it was right to take profits on on coins that moved
I noticed it and shared my thoughts about why I thought it was right to take profits on on coins that moved
8/ Let's look at how they moved after target
QKC 60% target hit now retraced 60%
LOOM 50%+ target hit now retraced 25%
DCR 30% target hit now retraced 20%
BAT 60% target & stopped
QKC 60% target hit now retraced 60%
LOOM 50%+ target hit now retraced 25%
DCR 30% target hit now retraced 20%
BAT 60% target & stopped
9/ Per the original profit taking thread - I never know if a profit taking strategy will be proven wrong. Most are scared to take profits to *miss* out on a 2x.
If 1/2 coins move past major levels, and can sustain push - it's easy to adjust and start holding longer.
If 1/2 coins move past major levels, and can sustain push - it's easy to adjust and start holding longer.
10/ Looking at it from a positional perspective - hopefully you were able to take profit on one of the mid/small cap movers before they've retraced a good amount.
NOW while large caps move the most and everyone wants those - mid caps are getting attractive again.
NOW while large caps move the most and everyone wants those - mid caps are getting attractive again.
11/ As they get more attractive and hit supports I like, I will try to position more heavily into them & out of the best movers like $BCH or $XRP as they get more attention + close to resistnace
Money will flow out when they are expensive into cheaper, better R plays in mid caps
Money will flow out when they are expensive into cheaper, better R plays in mid caps
12/ It is a constant judgement and measure of value vs momentum. The coins with best momentum now are the large caps. Soon the bad value outweighs the best momentum -> rotation happens.
You can be early or late into a theme - the most important part is knowing which one you are.
You can be early or late into a theme - the most important part is knowing which one you are.
