Leonchotrades

ETHBTC pair
*here is just a deep dive on an approach to analyze the market that
you can apply*

NOTE: there are a lot of approach, but personally, this is one of the
most effective.

BTC Dominance

Thought process: “ETHBTC broke out also my trendline, I can assume

First, as we all know BTC. Dominance from the word itself, is
basically the amount of the total crypto market cap which is in BTC.
now that ALTS will outperform btc. But that doesn’t mean btc won’t go
up also, it just means that altcoins will outperform the king. With that,
I’ll confirm first if BTCUSD is bullish and will fuel other coins as an
index”
BTC/USD

Take note of the price action on August 8, 2021. You see that btc.d
broke down from the trendline and was confirmed through a retest.

Thought process: “okay, since btc.d broke down, this could be an

indication that the money from btc is rotating to alts hmm, but let me
check first the total market cap to make sure that there is really money
deployed in crypto because if btc.d is going down, and the total market
cap is also breaking down, that would be very bad for the whole
market, it means money is going out”

Now we check total market cap on August 8.

Total Market Cap

Thought process: “I think BTCUSD is very bullish, now since my

analysis are confluent, now I choose which coins are worth trading.
Since btc.d is going down, I’ll just put small allocation for the
BTCUSD trade, so that I can maximize my capital for coins which has
a bigger upside like the alts. I’ll start with ETHUSD, I’ll be more
confident to have a higher allocation and risk since my charts are
telling me to do so objectively.”

Next Page..

Thought process: “Great, the crypto total market cap also broke out of
a resistance and was confirmed through a retest, I can now assume
that money of the crypto market is really flowing on other coins. Oh
since ETH is the biggest alt, I think I should check first ETHBTC, to
confirm if eth is really overperforming BTC.”
ETHUSD
Thought process: “This could be a breakout play, and I think this
would have a higher upside compare to btc, thus I will allocate more
here, either on leverage or spot, but I will make sure that I follow my
risk management, I’ll go smaller time frame and look for an entry”
4hTF
Thought process: “Now I see a bullish order block or some people
coined as demand zone, I think this could be a higher probability trade
towards the range high, I will place my bid in the demand zone since
it is a higher time frame breakout & retest point, and it is also and
order block on a 4h TF. So much confluence.
POST TRADE
The rest is history right? indeed, It outperformed BTC. Now let’s check
some strong altcoins to see if it’s really effective.
Let’s check Solana on Aug 8 if we could catch the big move, since we
all saw breakouts from our macro basis.
SOLUSD
See? On August 8, Solana broke out from its trendline and the
horizontal resistance. Since all your macro analysis is confluent and
they are all showing strength on alts, you could again place bigger
allocations on these strong alts in contrast with your bitcoin allocs. Just
take note when I say, STRONG, these must be the coins backed with
good fundamentals and good liquidity.
Now let’s look for an actual entry on SOL.
Again, SOL showed a good base/demand/ bullish OB or whatever you
want to call it. Thus, you could layer your bids on the demand. 1st. it
on the breakout area of a diagonal trendline and a horizontal resistance,
with all that in mind, your bias can be really bullish. Since Sol is really
a strong coin with good fundamentals which is really bound for growth
and price discovery, you could just trail your position and know
where/when to tranche add, and unload some positions.

Post Trade:

Probably nothing right? Outperforming the king.

That’s all for now, I hope I brought some value to all of you! WAGMI.