Bitcoin's Condition Deteriorates

This type of action is something we were preparing for last week:

Alternatively, if they cannot, and these patterns resolve lower – we should anticipate messier action for longer.

This just proves what we already know. It's a big fat mess out there.

Just take a look at the Altcoins:

If FTX's Altcoin index moves back below 3,750, the bias is lower, and we'll begin looking for names to short, NOT to buy. The entire space is likely to be under pressure, even  the leading coins, if Altcoins are below that level.

So our thesis is clear.

If Bitcoin is below that critical 30,000 level, it would be irresponsible not to be short Bitcoin back to 20,000. There are likely to be some nice short setups in Altcoins showing the greatest relative weakness as well.

Until that happens, the risk is neither defined for shorts nor longs here.

Just as we've been discussing coins showing strength in recent weeks, it may be time to shift the conversation and focus more on the laggards.

Here's a few of them.

Look at this serial underperformance from Ripple over the years. If Ripple's back below 0.810, the risk is in our favor for a short.

Until then, patience is warranted.

The same applies to Stellar.

XLM failed to breakout from this major base relative to Bitcoin, and now it's pushing to new absolute lows. We're looking for a decisive move below 0.33 to get short.

Until then, this is nothing but a sideways mess.

The new ICO, Internet Computer $ICP is one of a few coins back at their May Crash lows.

If this thing is below 90, the risk is very well defined for a tactical short.

Moving on, let's take a glimpse at how these digital assets performed yesterday:

Not too pretty...

Every single coin, but one, in our Top 50 radar was negative yesterday. That one speck of green was Theta Fuel $TFUEL.

This was a coin that we featured last week because of its incredible relative strength. Here's what we had to say back then:

With these performance-recap tables, we’re always looking for leadership. So while this one isn’t featured on the table, Theta is undoubtedly trying to take a leadership role at the moment.

Notice how its counterpart, Theta Fuel $TFUEL, is already pushing to new highs? There’s a lot to like here if THETA is above 8 bucks.

It's the only coin above $1B in market-cap that's at new all-time highs. There's some serious relative strength here.

Assuming we don't see further weakness in Bitcoin below 30,000, our risk is well-defined and we want to be long TFUEL but only if we're above 0.56, with a target of 0.83 over the next 1-3 months.

There's today's scoop on the Crypto space!

You can download our updated chartbook here, or view it online here, featuring our Universe of Crypto-related assets.

Be sure to let us know if you have any questions.

Allstarcharts Team