This chart shows the market cap of alt coins divided by the market cap of bitcoin.
When it's above the linear regression line alts are probably overvalued.
Right now we're at a point where btc is basically flat with very little volume while alts are flying high. This seems suspect to me.
I actually have been scalping alts long a bit since there's nothing else to do but I am not expecting this party to last long.
Basically it really feels like a pump before the dump.
I would be less bearish on alts if btc were strong but it is not.
Expecting alts to find resistance maybe around the red arrows and then it will be bear season on alts again.
When it's above the linear regression line alts are probably overvalued.
Right now we're at a point where btc is basically flat with very little volume while alts are flying high. This seems suspect to me.
I actually have been scalping alts long a bit since there's nothing else to do but I am not expecting this party to last long.
Basically it really feels like a pump before the dump.
I would be less bearish on alts if btc were strong but it is not.
Expecting alts to find resistance maybe around the red arrows and then it will be bear season on alts again.
