As you can see DGB has presented to us a massive pattern this is not to be ignored. There seems to be some support on the 200ma and on the respective fib retracement level. This however, will not last very long. With bitcoin and the market as a general having taking a beating, I only see alt coins bleed for the next few days. and both seem although there is some semblance of support but not much.
This bleeding will stop eventually but only after bitcoin shows us a reversal confirmation. Right now BTC is controlling the market and for the moment it seems there might be some upside potential, but we don't know for how long. BTC will probably go into a consolidation phase during which alts will bleed.
Hold your BTC , get some more fiat buy cheap. DGB can be had for very very cheap.
This is of course not financial advice and I am not a financial advisor.
Best of luck and good trading
BTC/DGB have shown high correlation; and BTC seemingly having found a bottom we my have upside potential. However, a stop loss might be a good idea just under neckline; which if violated in case of a crash would allow a sale and rebuy at a lower level.
We may see a downward movement is my prediction. Although still unsure if this will break the neckline.
Let's discuss this in the comments below.
Personally I'll have some stops put in place just in case.
Also because day traders get unpatient and start searching profits elsewhere.
When BTC goes for a powerfull bull run then everyone jumps back on BTC train selling alts usually, so for a "strong" BTC like you said...it depends.
It depends how strong BTC price movements are, if moderate and healty, you can see alts growing with BTC, if strong, and sometimes unsustainable, that induce to FOMO back in and can crash alts, so you may buy and start loosing while BTC is pumping hard.
Now that BTC is recovering in an healty way, you can see alts following.
In moments like these you can buy alts for sure, at least the ones that are slightly outperforming BTC on the way up on % gains and have the right setups. There are few, so you can profit from growing BTC/coin ratio + higher BTC price, you are going double speed basically, at least on an USD perispective.
But i bet as soon as BTC will break the latest downtrend resistences, FOMO will begin leaving alts behind.
But again, best gains for alts are usually during BTC consolidations. What we seen this December having BTC and alts going all parabolic at the same time, is very rare, i think is the fisrt time i've seen that in the last 4 years, the HYPE was real, so dont take that as granted for the next time. And if it will reapeat, i guess game rules are changed, but i doubt.
Same apply on the opposite direction tho, if BTC goes down in a moderate speed, you can have for sure few alts as hedge, doing pretty well.
When BTC goes down strongly, like we seen last few weeks, whole market crashes.
So to resume: buy alts when BTC is strong? Not really, it depends, must not be in FOMO mode.
Buy alts when BTC is weak? Only if they are not crashing with it, better wait bottoms for both. must be not on PANIC mode.
This is all about deciding to buy/sell alts in a way wich is strictly related to BTC price action, obviously you can always invest on the right coins with nice chart setups or fundamentals no matter what.
Going back to your post : "will probably go into a consolidation phase during which alts will bleed." i say Nope.
I thought what you said sounded contradictory to what happened in December.
I guess my initial observation of bleeding alts was to soon to judge. They definitely were bleeding during the BTC crash! But seems like as you said things have changed! Things are looking a bit more stable.
May I ask how do you feel on this coin and chart - DGB? I guess my analysis is invalidated then. Did look like a huge head and shoulders though! May it still be valid if BTC crashes again? I guess I just wanted some input!
Your input helps me learn and hopefully contribute something back to the community!
At this point DGB risk/reward is more for the upwards. This new market cycle have to play out soon or later, and im very positive for this 2018.
We have seen coins with way larger supply going to 1$ this year starting from few cent, if we learnt the lesson, everyone should buy some of these cheap coins wich are also real blockchain projects. (like DGB)
Obviously avoiding putting all your eggs in one basket.
Regarding more short term, the possible H&S you see is corret as "potential", but is not validated yet, and if BTC found a bottom, since ive seen a clear positive correlation with DGB and BTC price, it may bounce very soon since we are now on support.
So i wont say is a "sell", since neckline has not been violated yet, but can be used to set a good stop loss for sure. It may be instead a good price to buy some.
If BTC crashes again, this H&S will be probably validated and will play out as you expect, untill then, i wont risk to sell and buy higher later.