What's going on everyone? My name is nicholas merton here at datadash and today is january 4th of 2021. Well folks, i hope you are having a fantastic day. Wherever you are, and in today's update, we & # 39.
Ve got a lot to catch up on in regards to cryptocurrency markets, bitcoin, yet again, setting multiple all-time highs and climbing up to 34 000. Yet over the last couple of hours crashing to twenty eight thousand dollars, we'll talk about what we need to look for there for bitcoin, but along that as well.
Ethereum climbing up above the four digit range over a thousand dollars the highest level. It's, been in over four years. We're gonna be talking about what this means for all coin markets, as we also see dominance surging up over the last 48 to 72 hours.
Could this be the altcoin cycle that we're? Looking for so we & # 39. Ve got lots of things to discuss, let's, go ahead and dive straight into it guys. Well. The first thing i want to start by, as we take a look here over the last 24 hours we see here not only that ethereum is leading the market here in the top 100, but we & # 39.
Ve got a wide range of different altcoins, either in the green or holding relatively neutral, with some other cryptocurrencies following down with bitcoin on the tail end of this list. Here that's, an important thing.
We're, going to be hitting on later on, as we focus on all coins, but above all, the key thing i wanted to hit on here is that there's, some good news. All we're going to be talking about today is price action, because there really isn't much headline news that is leading the market to doing what it's.
Doing it's, simply purely people focusing on what the market's doing right now and building positions we & # 39. Ve got a lot of excitement, a lot of almost anticipation for getting into crypto markets, but also some fear of taking profits, as things have gone, nearly parabolic and it's.
Increased volatility to a degree that even i didn't expect. We would see at this point guys it's, absolutely insane. So if you're here right now, you're here at a really interesting time, all right enough rambling, let's, go ahead and talk about some of the important things going on here.
If we take a look here on the 30 minute chart here, we can see that we climbed all the way up here towards a high of 34 778, almost pressing towards a big, even level of 35 000 collapsing. All the way down here to 28 000 for bitcoin now just to go ahead and get some perspective here about how significant this drop is taking it from top to bottom.
Here we saw a nearly 20 correction overnight here in bitcoin's price. That is absolutely insane guys. Um, i just again to see this kind of movement in bitcoin's price here over a single day is, is quite substantial and it wiped off a lot of market cap.
At the same time, even though we haven't fully recovered, we have made a nice rebound here at the relative peak here over the last couple of hours, really just a little over two hours. It was 11, but right now we've recovered officially around 10 percent.
Even here right now. So again, a nice rebound not exactly up here to 35 000, but it looks like there's, a good chance that bitcoin could recover the majority. The majority of its losses here now just taking a look here at the daily again this.
This kind of excuse me the weekly chart here and we'll dive into the daily in a second. Is this such a big shocker? Is this really that negative for bitcoin? No, i mean first off, we're still well beyond.
We're still above 50 from the all-time highs. If you want to drag this down right down to about 55 percent, but guys we were up here just for some context. I don't know why the chart isn & # 39. T just after a control z, we were up 75 in three weeks, less than three weeks to be precise, this weekly candle started the 28th year, so we're, not even done with the third week a 75 move after breaking all-time highs.
Guys i mean this is far off from what we saw in the last cycle. It's way, overtly optimistic now. I understand why this is happening. We are getting serious institutional interest in fomo and i think that this is relatively justified now that we understand just how crazy things are on this, the on the basis of fomo and people getting excited in the institutional space right, the fear of missing out, but at The same time as much as i do believe, we're, going to recover a good amount of this.
These gains here for bitcoin over the next couple of hours. This is definitely going to leave a stain on the chart here and it's, going to get people a little bit cautious about buying bitcoin at these levels.
As some companies, some larger firms are out there taking profit. Now i'm, not talking about the microstrategy as well. There's, other companies who are in the same boat either hedge funds, whales in the space and don't doubt that, even though there's, a lot of institutional interest in bitcoin, there can still also be, in a Short period of time, a lot of fixed cell side pressure that can shift the trend, especially on these over exuberant cycles.
I'm, going to start using exuberant a lot more because we are seeing exuberance throughout the market, my old favorite term in 2017.. Now, taking this into account here and just going straight here to the chart, what are we going to be watching for over the next 24 hours for bitcoin? Then we're going to dive into all coins here.
The general trend here that i think is going to play out. We take our polyline tool here, so we're, going to continue to climb here over the next couple of hours and test up on this line. If we face resistance on this right, we'll, probably test it.
A few times we'll start to pull back here on a slower basis and re-test these lows going downward right, but anyways. I digress. I don't, really know exactly what's going to happen in the sense of price, but i will tell you all that i think that it's likely we're, going to face resistance at this Line here and we're, going to slowly start to kind of consolidate and pull back and try to make something.
You know on the lower range here for bitcoin maybe make this support to some degree. But the major thing is that we're, going to be seeing this pullback in bitcoin, and i genuinely feel from what i'm, seeing here and the stark decline here that we saw here on the daily it's.
Going to lead a lot of investors, especially wiping out pretty much a week's worth of gains here, to look towards alternative investments in the market that are outperforming that are leading against bitcoin and take a look at ethereum here.
Ethereum last night broke above the big, even level of a thousand dollars its highest level. We've seen in over four years, but the important thing to keep in mind here to not over complicate things and not really focusing on the short-term price action.
Ethereum's generally doing what bitcoin's doing here and recovering on the us dollar chart that's pretty common. The important thing to think about is to look at ethereum's actual chart. I'm, not even going to take a look at the daily.
I want to look here at the weekly. Take a look here: the ethereum all-time highs. Back in january of 2018, we're a little bit about hundred dollars around. Fourteen hundred forty dollars at the exact, precise high on most exchanges, we didn't even break those all-time highs.
Yet guys - and this is a critical point - i'm gonna be hitting on here. You guys know that i have been excessively diligent. I've almost seemed crazy at times calling for an impending altcoin cycle and how, even though, during the pullback in altcoin dominance, even during all the brutalness of this pullback uh, let's.
Get started through the you know, the upward swings, and now it swings where bitcoin has been absolutely outpacing. The market i've said i'm going to stick to my guns. I'm, going to hold my altcoin positions.
I'm going to hit on that point in just a little bit here, but we can see here that ethereum dominance shot up like a rocket against bitcoin. The ebtc ratio shot up big time, which means that ethereum is starting to gain big time against bitcoin, and we basically brought ourselves back to a position here that we haven't seen since early september to put that lightly guys in two days.
That's, going to mean that we basically made up for four months with a price action september october november december. Up to this point here in january, a massive recovery here for ethereum, basically taking us back to the first correction point in the summer.
Take a look here at all coin dominance as well, not, as you know, bright and good as ethereum here as you're weighing in a lot of different cryptocurrencies and xrp, has played a big role in this decline here to be fair, but this Is still a significant rebound going from a low here, exact value being around 26.
37, all altcoin dominance all the way up to thirty point: eight six percent and the actual high being around thirty two percent here in a matter of less than forty eight hours, take a Look at that hourly chart big bolster here, starting to set a new relative highs, not just in this case higher lows right.
We want to set up here. We want to make a new support range and continue on this. That's. What we're going to be looking for, but above all guys, this is absolutely phenomenal bouncing and it's in the sense of all coin dominance.
Right and taking a look here at the weekly in the long term, we bounced off that historical support. It was that worst case scenario thing where we actually came back back down, tested that support, and now it's.
Looking like, we're, going to see a reversal here. So what's? The point that i want to share with everyone here, don't, get caught two steps behind it's, a very critical point that i drill in a lot here guys.
I i want to emphasize to you a little bit because i know there's. Some new people to the channel there's, even some you've watched it for a long time and you guys still are curious. Sometimes with how i trade markets, if you haven & # 39, t picked it up by now, or maybe this is your first time viewing the channel, maybe still relatively new.
I do not day trade, maybe on an occasion with a small portion of my portfolio for fun uh. But the thing is, i genuinely do not day trade in this market. You are going to likely lose day trading in most markets, maybe encrypted you can make money, but the stress you're, going to put into it and, along with that as well, the lack of performance you're, going to have comparative To just simply swing trading over long-term time frames or huddling and dollar cost averaging, you are going to lose out most likely.
I do not day trade and my whole goal is simple. I know in this case that on the broader cycle that we have seen historically time and time again, especially in the previous cycle, what we have to work off of that in this case bitcoin is going to do phenomenally well, but, generally speaking, all coins tend to Outpace bitcoin - and this is not just simply because they're, better projects than bitcoin.
Now i'm, not here, to really argue fundamentals. It's because all coins have exuberantly shown that they outpace bitcoin their bull markets and, after 80 to 90 corrections against bitcoin going into bear markets.
They tend to make back those gains. It's, a very simple thesis and the whole point here about the not getting caught. Two steps behind is not getting caught in the short term movement of one cryptocurrency versus another.
It is extremely emotional to get, and i understand i've, been there guys it's, easy to get caught up in the volatility i'm, not making fun of anyone. I'm, not berating. Anyone. I've been there. I just want to help you guys learn in this case, because if i would have in this case, if any of us would have basically foam mode into bitcoin at the top here, while all coins were still at rock bottom, if they would have sold their altcoin Positions at this range of dominance here, what you would be left with is being in a downward position.
After already taking all these losses from lost gains from holding altcoins versus bitcoin, so that would have already been bad, and now you would actually be down on your bitcoin position, whereas in the case of ethereum, if you want to take it to the dollar chart here, Right over the last few days, in the same time that we've closed down multiple days worth of gains for bitcoin ethereum is now testing still back around a thousand dollars.
It was just at eleven thousand fifty dollars. Excuse me eleven hundred fifty dollars just a couple of hours ago. You do not wan na find yourself two steps behind, because if you were holding all coins through this entire time, more specifically ethereum you made back months worth of losses against bitcoin in 48 hours.
The market will turn in an instant and i can't drill this enough. I know i'm, probably shouting at this point and i sound like i'm rambling. This is so critical to understand guys i've, seen too many people get burnt.
It really gets me a bit emotional here, and this is why, on the newsletter, i had multiple weeks worth of averages that i made into different cryptocurrency place from fiat. I've, made many announcements here on the channel about how i was sticking to my guns and all coins, and this is proof in the pudding it's proven the pudding that you cannot get sidetracked.
You cannot let your emotions get the better of you and you need to focus on the longer term trend. We've generally seen here that we're in a broad uptrend here for ethereum it's been outpacing bitcoin since september 2019, since we flipped on all coins, and we've, been setting on these higher Lows, albeit it's, been very volatile, but what i think we need to learn to do here is maybe take profit better.
Once we make these extended rallies over bitcoin, perhaps maybe that's, something we need to consider, but i'm, going to tell you guys with this kind of movement. This is outpacing anything we've, seen here over the last two years.
I think this time is very, very different. We're, going to start seeing all coins pick up big time as massive massive levels of institutional liquidity have started to push bitcoin's, value to exuberant levels and, as we all know, as bitcoins value increases once that trickles down into All coins that's, going to mean that there's, fresh new liquidity to speculate on other cryptocurrencies thinking this time around it's, going to be any different.
In my opinion, it's, not going to play out very well so guys i rambled on a bit here. Last thing i want to say overall here is taking a look at the crypto fear and greed index. A lot of people by now have pointed this out that we've, been kind of overextended here since november.
I get it very clearly - and i agree with the bitcoin bulls here - that this market is different. This time around, i'm, not really expecting bitcoin to just absolutely sell off or anything of this sort.
I think that it's, going to probably consolidate and slightly sell off over time, as liquidity circulates here to all coins. Do not sleep on the potential all coin cycle that's forming here, i'm, not going to make any calls.
I've, probably made it one or too many times in the past when it ended up just being a nice run up in altcoins, but not really per se. The altcoin cycle we'll, see here. I want more days of follow through on auckland dominance and be a bit more disciplined here, but overall this is significant.
This is signaling very closely to a trend reversal and again. Take this too hard guys. Don't, get caught, two steps behind stick to your guns, focus on those long-term perspectives, and i'm gonna say one last thing: you guys watched the altcoin video.
I hope you have it's. Definitely a great video that can get you prepared for the salt coin cycle and guys could we have timed it any better january, first, two days before one of the biggest leaps at all coin dominance, so i think we got kind of lucky on that anyways.
I hope you guys are having a fantastic day if you like this video drop, a like, consider, subscribing and hit the bell icon and until the next video everyone see you on the next one take care everyone,