Bad Breadth
Disclaimer: Your capital is at risk. This is not investment advice.
ByteFolio Issue 121;
Last week, the title was Dead Cat Bounce, which is how the crypto market has turned out. The Bitcoin chart has recovered some ground, but it remains a limp effort against high expecations. Not only is the trend score down to 1, but the short-term moving average has crossed below the long-term (200-day) moving average, which can lead to a downtrend… but it doesn’t have to.
Bitcoin Trendscore 1 out of 5
Then the ByteTree Crypto Average, our breadth measure, is slack, meaning the average token is still under pressure. Crypto performance tends to be an all-or-nothing affair, and the breadth has been deteriorating since March.
ByteTree Crypto Average (BCA)
Few tokens are showing stand-out performance and we patiently await the good times to return. This week, we go a step further and reduce altcoin exposure in favour of Bitcoin. I do not know how long this will last, but we shall remain in defensive positioning until things improve.
