Ethereum, Litecoin, And XRP | Sleeping Giants Set To Take Off?

published on August 2, 2020

What's going on everyone my name is nicholas merton here at datadash and today is july 29th of 2020 well folks i hope you are having a fantastic day wherever you are and in today's video i now want to spend some time to talk about bitcoin breaking

Up towards 11 000 as well as the all coins i believe are that are going to be leaving the market here over the next few days and weeks but outside of that talking about the macro

Environment and how the fomc meeting that's going to be happening today may change the current landscape all right so let's just go ahead and dive straight into it taking a look here over the last 24 hours

Bitcoin has mainly remained neutral holding its gains and the vast majority of the market is in a general green scenario here you can see the vast majority of place here are starting to tick

Up after a pretty big hit to most all coins as we saw bitcoin regaining dominance across the market and drying up the liquidity from the altcoin space taking a look here currently resting around 11

000 here for bitcoin and last night we were starting to top out at a new range over the last two days we were starting to press up a little bit above 11 000 but all in all we've been mainly holding the vast majority of the gains over the

Last few days and last week in bitcoin take a look at the weekly chart things look great this is exactly what we were hoping for on the bullish case scenario if we were to pop up above this line of

Resistance it's become very clear now i mean you can turn off the drawings here but if you generally keep in mind that line of resistance from the peak here to the secondary top we've broken through resistance for the first time

Since 2017 this is highly significant everything's looking great we had months of consolidation here starting back in april against the line of resistance we have the squeeze momentum indicator

Here on the weekly flashing five points to the upside favoring the bulls and outside of that as well again we've got the overall long-term technical wedge that we were building up through

That is signaling that we're ready to start kicking off not only to the previous highs but for the next bull run and all coins have been a great sign of this if you guys have been

Trading the right plays you know the small caps and make caps and decentralized finance and enterprise blockchain we've done phenomenal in our newsletter last month we had two picks

That did a 200 percent return that was kava and rlc so again if you guys are interested you can check out the dash report down below in the description there should be a link to the newsletter but all in all

Here the major thing that i want to emphasize is that we're probably going to be seeing a shift more towards the large caps here so taking a look at all coin dominance

We've obviously taken a bit of a hit here this was the two days where bitcoin saw the majority of its gains because of this all queen's not down back to a more normalized range here

That it traded around back here between the early part and late part of july so what are we looking to actually you know do well in this environment what plays are actually going to accelerate beyond bitcoin well first off i want to

Talk a little bit about litecoin so i built a slight position like when the other day here we can see here that litecoin is starting to pick up here whether you're looking at the daily

And we had a little bit of shaky volatility when bitcoin started to leap in the market a lot of all coins selled off but a lot of the large caps started to bounce back quite strong

So just taking a look at the weekly here right this is where you can get a very clear image here we're just taking a look at binance but i want to go ahead and actually pull up our bittrex chart

So we can see our general kind of entry exit zone so again this is the historical entry exit zone that we look for here generally anywhere down here from 600 000

Down here towards 350 000 satoshi's i know it's a pretty wide range but you have to give and take that if you're expecting to pick the bottom of an asset roughly pick the bottom of an asset that can

3x in a matter of a couple of weeks as history has shown us but all in all here just looking at this chart right you've got a five on the squeeze or excuse me on the sms indicator here

You've got along with that as well price generally down here are you bullish or bearish here on litecoin to be quite frank with you guys i think that this is a wonderful chart here

To see that we're down even on this lower range here again considering that again even though you might have to take another few weeks of losses if this does turn back around

Right eventually this is going to probably start picking up and we've seen historically that litecoin moves big time a good comparison to this is the gold silver ratio silver

To gold as litecoin is to bitcoin and there is a very very uh historical trend over the last two cycles in commodities the one we're currently in now in the one previously where silver accelerates against gold

And we're seeing that actually right now ironically enough but outside of that as well there's other plays i have a feeling that ethereum is going to do well just taking a look at the bittrex chart

Here the thing that i'm noticing is we're doing exactly what happened to gold in regards to its ratio against equities you break out of an ascending triangle you have a correction down to that line

Of previous resistance and you make it support taking a look at the daily it becomes even more clear what's happening here we have not moved this line on the chart this is exactly what we had here so in

This case it's just basically coming down making that previous resistance support exactly what ethereum should be doing and it can accelerate very quickly back up

The next thing as well that i've been looking at as well is binance or excuse me x or p ah i don't think i have my co on well i don't drink coffee actually anymore guys i don't know if

I mentioned that to you all on the live streams but anyways taking a look here at xrp i want to go ahead and take a look at the longer term trend here right getting down to a similar range

Where we've seen massive acceleration in the past we've started to nearly bottom here again showing a very similar pattern here a multi-month regression here over the last year or so as it's been

Losing value slowly to bitcoin since back here i mean it's really been doing it ever since back here in december of 2017 but really this kind of slight consolidation period where there's not

Too much loss against bitcoin very similar back to 2015 to 2017 as we've been doing it here back in the summer of 2019 so we might need some more time for a full scale consolidation until we get

One of these accelerated moves but i have no doubt that we're looking for a bounce up as if you were to take a look at the general lines of support here we're actually towards the lower band here so

I think we can get a slight accelerated move here in x or p even if we don't get the major move um until later on so anyways these are just some of the plays that i'm watching again they're the large cap

Plays they're not really that rare unknown and as much as some of the d5 plays and the enterprise blockchain plays balanced backs problems yesterday and over the last few days

Again bear in mind that they're still massively down from their their all-time highs or the relative highs that they set recently so it's important to consider whether or not that trend is going to remain

I really think that small caps are going to push sideways for a little while until we see some more substantial dominance being gained from some of the larger plays just my food for thought again as much

As i'm more long small in mid caps than anything else the same time i really do believe that we need to keep open that there are going to be cycles where different categories and sizes in regards to

Market valuation of all coins will perform better than one another okay now i wanted to dive into this news here because i think this is relevant news not only for crypto but it's relevant news especially for traditional

Markets and we're going to be spending some time to talk about traditional markets today for those of you who are missing my discussions on traditional markets one thing that i wanted to talk about

Here to start off is a really interesting article from the financial times and it's basically just discussing about how the fomc meeting is coming today so this is something you definitely want

To watch here you want to watch what the fed does here now i have a feeling that like most of these events it's going to be what most people assume is a non-event in this case basically

The fed's not going to adjust any radical amounts of monetary policy they're not going to reduce interest rates just yet i have no doubt that in the next few fomc meetings

If things start to you know take a bad turn from the feds basically inactivity from this meeting and a few others then they're eventually going to have to go to a point where they cut down to

Negative interest rates we've talked about this in the sense of treasury markets showing this through the actual treasury yields on a race down to zero this likely is a key indicator that the

Fed is going to be taking rates negative so anyways rates are not going to be dropped but one thing we have to watch for here that they talked about here in the article is really the fed's balance sheet

Projections now we know very clearly that the federal reserve is currently on a bond buying program they basically are buying i think if i remember correctly is around 80 85

Billion i think a month they were going from around 75 billion a day at the peak of the crisis i'll have to scroll there we go so 75 billion per day and they're making 80 billion dollars in

Purchases on a monthly basis i have no doubt that you could see the fed basically i think what the market would like to see is the fed boosting up this purchasing of bonds rather than just 80 billion a month

But again i'm not i'm curious what's going to really happen here in the sense of the fed's decisions you really cannot know until things really go through so here's the calling i would say guys

As we're diving into equity markets right the key thing i want to focus on here is how the vix is now starting to find support in its previous resistance range back here in 2018 and in december 2018

Stepping into 2019 this is a really bad sign here for markets if we get a really bad day here at the fmc fomc meeting and we get you know a good three or four percent down day

In the nasdaq and the dow jones in the s p 500 and we break above this line here the second golden line be ready for a shaky market right and again volatility can increase even in an upward market here but i

Really think we're going to start to see big spikes in volatility possibly good trading opportunities but not so good for those of you who are just riding the long term wave so again i just want

To keep i want everyone to keep that in mind again we are well beyond double the valuation of the dot-com bubble and again weekly sms indicators starting to flip red here

As we got back here in january so again just bear that in mind here i think we're again going to start to see a little bit of turbulence after multiple months here since all the way back in march of just

Happy markets you know there's going to be eventually probably some kind of pullback but all in all the thing to watch for here with the federal reserve that would lead towards that volatile

Event is whether or not the fed decides to not add any stimulus right we already expect that they're not going to be teetering on negative interest rates that doesn't want to do this right now

So the thing we need to watch for here is whether or not they're going to be increasing their balance sheet if they do not increase their bond buying program if they do not increase you know for

Example um long-term or start to explore long-term equity purchases or at least mention something of the sort then you're likely going to see here that if they're not buying

Mortgage-backed securities if they're not buying bonds they're not doing anything markets are going to react quite negative because right now you're going to need that fuel to keep

This going to keep valuations as high as they are i mean just to understand the scale of the market guys right right now equities are a massive uh massive market compared to what they

Were even just back here for example right considering back in january excuse me back in march right equities like the nasdaq index here was sitting around seven thousand seven um seven thousand

Five hundred right you have to understand here that this means valuations were much more cheaper back then so with the market being you know basically 33 percent larger than what it

Was back then you need an extensive more amount of inside basically inflows into the market you need basically cash injections into equity markets and there's not increased

Stimulus through qe there's not lower interest rates to make credit even cheaper than what's going to give because stock buybacks aren't right a lot of companies have either committed

To not doing stock buybacks and even if some are going to return back to their stock buyback programs it's not going to be anywhere near the kind of inflows we had before retail volume

Kind of getting a little bit thin now right we've had our kind of wave of retail excitement that's played a big role in this so what's going to give what's going to be the inflow for markets

Because quite frankly as someone who's investing in bitcoin here i know that bitcoin is a small market and because of that i understand the principle of markets of scale and how it can continue to ride

Out for the long run so again i really think that the focus here is for cryptocurrency markets and i think it's the best place to focus on right now you know again if you're interested in a

Lot of the altcoins everyone again you can always check out digifox and stuff we cover a lot of the d5 all coins and things like that as well as the staking pools and basically areas where you can earn interest on

Your savings but again as you start to take more of a macro perspective here and you might want to get exposure to gold or silver i highly recommend checking out our sponsor bitpana pro now they not only

Are cryptocurrency exchange but outside of it as well they offer not only a wide range of fiat on ramps but also the ability to purchase uh gold and silver tokens as well as a few other precious

Metals from my understanding so again if you guys are interested especially for those of you who are in europe check out the panda pro they made this video possible so thank you very much for sponsoring

And all in all everyone that's gonna be it for today's video i don't know why coinmarketcap is thinking i want to say that there we go so i want to hear from you all down below in the comments what do you think

About what's going on in the market right now i'd love to get the discussion going with you all but i think it's a really exciting time again just focus on the markets that

We've been focusing on crypto precious metals equities i really want in touch with a 10 foot pole i'm not bearish not shorting the market i'm just putting my bets where i know that there's actual

Growth potential so all in all guys gold at all-time highs silver breaking past pretty historic relative resistance and bitcoin breaking past its relative resistance as well

Both of which precious metals and crypto are looking like they're sparking the next bull market this is an exciting time to be with you all and i want to thank you all as well for continuing to support me and doing

What i do i love this it's an exciting time to be in these markets so all in all i hope you are having a fantastic day wherever you are and i'll see you all the next one stay tuned

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