The left part of the picture shows an example.
Quite often, bullish and bearish divergences on higher time frames are a crucial indicator to spot market reversals (tops and bottoms) as they pop up at those reversal points.
At this point, the market is still correcting, as Bitcoin’s price is showing weakness, due to the increasing index of the Dollar. On the other hand, Layer 1’s are rallying substantially, resulting in massive gains for the people who are part of that position.
This shows that the correlations in the markets are dropping heavily and that projects and platforms are running or correcting on their own, not dependent on what Bitcoin is doing.
A crucial indicator here, and something to still be looking out for, is whether segments and niches of the markets are going to be uncorrelated to Bitcoin in the future. Overall, a correction and sideways action is a very normal outcome to be happening. The entire cryptocurrency market is valued at $2.5 trillion, which is practically nothing compared to other assets.
We’re still early, whether you like it or not.
And you’re also still early to the newsletter. This has been the first issue, while you’ll be receiving three issues per week if you sign-up today for €15 per month!
The next issue will be sent on Wednesday.
Have a great one!