THE TREND
Altcoins are getting punished due to the continued decline in $BTC. Even good news does not do much to stop the loss in price for coins likes of Stellar $XLM who recently announced partnerships with Keybase, a security app for mobile phones and computers.
PERSPECTIVE
One of the causes of the market decline in the past few days was a huge $BTC sale by the Mt. Gox trustee, which "sold 35,841 $BTC for $362 million and 34,008 $BCH for $45 million". Seeing this slip, Goldman Sachs predicts $BTC to plunge to February low of $5,922 noting that close attention should be at the mid to low $7,000s. This general downward movement spells more red for the Alts as we are seeing many of them setting new lows for the year.
WHY
This very bearish price action and the current candle closing below the 20 EMA (in blue) means we are very likely to see sustained downside action. The next stop should be the pink trend line, as it converges with the 78.6% retrace. Below there, we should see a bear flag breakdown. If this bear flag does break down, we are very likely to see a test of the low on February 6, meaning $BTC will likely fall to 6,000, or lower.
IN SHORT
Some of the strongest projects such as $ADA and $XLM are setting new lows while others like $VEN, $DASH, and $NEO are retesting their February bottoms. This coming drop will be a tremendous opportunity to get in on the best cryptocurrencies if you haven’t, and to cost average down if you bought earlier this year.
