Anyone who has seriously performed technical analysis on the crypto markets in the past has likely encountered the painful shortcoming of not being able to chart their favorite coin. This is thanks to the fact that many coins are not available on the popular charting websites tradingview.com and coinigy.com. Fortunately for cryptoanalysts, the prominent crypto Twitter trader and analyst @coin_signals has created a website that allows you to do that and more.
Two of the most overlooked charts in the cryptocurrency space are the total market cap chart and the Bitcoin dominance percentage chart found on coinmarketcap.com. These charts allow one to truly see the forest for the trees and observe the overall market dynamic from the most macro of perspectives. Unfortunately, in the past, these charts were very rudimentary and not ones to which you could apply your classic technical analyst drawing tools or indicators, until recently. At coinsignals.trade, an analyst can now not only see these charts in the form of classic candlesticks, which portray valuable information, but they can also apply incredibly analytical drawing tools and indicators to the chart to better make assumptions about the future direction of the overall marketplace.
For example, earlier in the week, Bitcoin experienced a violent dump in price, along with most altcoins. Looking at the $BTC/USD chart, it seemed there were no obvious clues beforehand. For those who were zoomed out and looking at the total market cap as a whole, the resistance that led to the plummet in price was obvious. The same level that produced week-long bounces in price (support) was now just above head for the total market cap (resistance) and looked primed to send price lower.
By taking note of the situation of the overall marketplace from a technical perspective, one could have reduced exposure drastically and minimized the damage during what most saw to be a news-induced “flash crash” on Tuesday, September 4th.
Not only does coinsignals.trade allow one to keep a bird’s eye view of the cryptocurrency space but it also allows you to take a closeup look at some of the minor details of the market cap, that being the more fringe coins not yet on exchanges large enough to be listed on tradingview.com. Beforehand, if you had a coin that was freshly listed to a smaller exchange and was an exciting up-and-comer, you could not apply technical analysis to it. Things were very rudimentary. Now, all 1,921 cryptocurrencies listed on coinmarketcap.com can be charted, from Bitcoin ($BTC) itself, down to the smallest fish in the sea at the moment, Wavebase ($PWV). Being ahead of the pack is the name of the game in trading and investing, and finding an edge on the proper entries for these lower market cap coins has been difficult before now, coinsignals.trade has forever changed that.
Speaking of altcoins, one of the easiest ways to tell if the current market environment is one in which we will see altcoins boom like they did in December of last year is by looking at the trend of the Bitcoin dominance percentage. This is a chart that was usually something analysts had to screenshot and move over to Microsoft Paint style software to draw crude lines on and hope for the best in terms of accuracy. Those days are gone. If one insists on applying Fibonacci sets, Ichimoku clouds or just a general trendline to the Bitcoin dominance percentage chart then they can now do as they please. Being able to determine whether the Bitcoin dominance percentage has officially confirmed a downtrend could be the difference between getting in early on the beginning of what many call an “altseason” or panic buying the top only to see it go down later.
In a fast-paced environment like cryptocurrency trading, having an edge is a must. Applying accurate analysis to the beyond-critical charts such as the total market cap, or Bitcoin dominance percentage will take you a step beyond other analysts in the space. On the other hand, if you want to scalp some short-term trades on your favorite low market cap coin listed on a faroff exchange, coinsignals.trade is a website that should be fastened tightly to every crypto analyst’s toolbelt.