Altcoin Reversals

NxtVeeru, Tuesday, February 1, 2022
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What are we looking for in an Altcoin Reversal?

what happens and what we’re looking for in a alcorn reversal so this is a chart of avax usd on the six hour uh what you’re first looking for is a market nuke and all coins obviously are higher beta than um bitcoin and will move very very hard relative to bitcoin so like you know if bitcoin is going to experience like a 30 move all coins will often experience like double that and not always of course but uh so this is an example of uh avax this basically went from 38 to 17 in a span in the span of like two days and then it obviously had another leg down to negative almost 70 percent and that’s not even from the highs this is just like from like you know the nukage so what you’re looking for is a big candle nuke um and this candle nukage can happen over like a few candles a few days but generally speaking this is like the worst of it usually and this is the maid dump back in 2021 of course we all remember it you know all queens really nuked very hard and every single now as i say this every single um bear trend has a different type of pattern and a different way in which they got there what we’re seeing lately is we’re seeing more like a slow grind down from many all coins we’re not really seeing like this massive market nukage so it’s really going to depend on the context and it’s going to depend on the chart with that said um this is a pretty common overall bottom for um for many all coins so here’s avax as i said um number one you look for the first big market nukage so anywhere from 30 to 60 or even more over a few days um you know these all coins will just get wrecked and what happens after that period is you see lots of volatility you’ll see lots of choppy price action you’ll see lots of cell volume lots of buy volume um just lots of volume usually at this first stage after the candle so you’ll see you know like big market nuke and then you’ll see lots and lots of ping-ponging around for a short time period and this is usually pretty standard you know it might make another leg down it might just stabilize uh generally it’ll make some sort of lower high on the very low time frame so that’s what we saw right here in may 20th but ultimately these are lower highs that will come you know this is very very common so if you are around during this market nuke there’s actually a good opportunity to like buy the wicks you are knife catching quite a bit but then usually you’ll get some sort of slight mean reversion to make a lower high and then usually it will revisit the lows or it will break past the lows in this case it broke past the lows so the second stage is heavy volatility lots and lots of buy cell volume as you can see sometimes it makes another leg down sometimes it sometimes it just gets close to the wick but regardless you’ll see lots of volatility in this next stage this is over like the next usually a few days after the dump and it’s contextual too depending on how strong the dump is if the dump itself is very strong then this initial volatility period will be very high as well um okay so after that period you’ll see a bearish market structure on lower time frame so this is the six hour as you can see this has lower highs and lower lows all the way across the board like it’s just just lower lower lower lower lower right just lower highs lower lows just it looks bad step four is when you start to see volatility and volume really dry up and you can see this on higher time frame charts you can really see that volume just comes down right during this this overall rounded bottom pattern the volume just dies which is what you want to see and sorry for the messy chart and the step up number four is volume and volatility both die down and sometimes you get like one last retest so you’ll see some sort of like double bottom here this is a double bottom on lower time frame charts um and then at the end of the day you get a rounded bottom this is the rounded bottom this overall was the reversal pattern sometimes you’ll get a rounded bottom sometimes you’ll get a double bottom on higher time from charts where you know price will come price will come down like this come back up and then come back down again that is a very common pattern there’s many common patterns for bottom though i mean like you should just study some patterns and you’ll see it so this was a rounded bottom reversal and the real big confirmation was where we saw this key level this 25 area this was you know the strong resistance area when you see volume confirm right here the move this is when you really really want to pay attention as you can see in august 17th price had an insane amount of volume even more volume than the overall dump and to me this is like really when you start to pay attention you can you can actually miss the first big move too you know like i don’t know when you say it goes from like uh 17 to 25 in the first like just few days up 50 you can still buy this move that’s the thing that people need to really understand is that i know a lot of some a lot of i know a lot of people that um they were born in the bear market like 2018 so they’re afraid to buy anything that’s pumping but that’s really the wrong move um the last several months you really want to buy the stuff that’s pumping because it has the most energy the most buyers the most support the most volume the most liquidity the most attention from everybody it’s really it’s key to buy these types of moves and so anyways this is the the final step is obviously um avax moved very hard now it’s important to understand that it depends on the altcoin that you choose not all all coins really resumed its old may highs if you look back to see um coins like chain link chain link never got close to its highs so let’s briefly look at chain link .



You’ll notice chain link never got close to its highs so you know its highs back in may all the way up to 50 52 and although it had the same structure as it um as the other one avax where you know you saw lots of volatility after the dump and then you see a slow grind down bearish mark structure on lower time frame charts and then this kind of kind of had a rounded bottom reversal not quite as not not quite so much as much as abax and it hit a lower high at 36. it’s important to note though that there’s still very profitable trade to be had from 13 to 36. right you almost triple your money uh from the lows to the highs so that’s one thing i want to also stress is that even though these coins might not necessarily hit all-time high levels of course it’s really good to trade coins that have that potential but um there are many opportunities for you to take even if you don’t necessarily get all-time high levels uh for instance as i said you still get a 3x here a nearly 3x but it is important to also see the comparisons between these types of charts so let’s also look at

Looking at type of bottom strectures

A  few other type of bottom structures um that might um they might be let’s look at let me take a look let’s look i should have prepared a little bit better i’m sorry let’s look at some older coins uh okay sure s s xp even though this happened in the um defy summer of 2020 it still has a lot of the same characteristics as we saw in may right so we see big blow off top and this is during d5 summer this is a very fun time big blow off top big candle nukage right uh so it goes like negative 40 or something like that negative 50 negative 50 from the highs in just a short amount of time period bearish retest and then we get one big market nuke again 70 and that’s this is also a little bit off topic but this is also why you see some people saying oh like you know your coin can go like negative 50 and negative 50 percent negative 50 you know like you can just keep going lower and lower and lower like in these situations so as i said before you you generally see one big market nuke lots of volatility and then potentially another market leg down followed by a little bit more volatility and then that’s when you start to see the bearish market structure where price slowly grinds down and then you see um low volatility low volume after that and for this one it was a rounded bottom reversal so it took a long time but obviously got this big first initial candle nukage as i said maybe 40 or so and then it made like a lower high grinded away and then it made another leg down lots of volatility lots of lots of volume as you can see right here and then a bearish market structure grinding all the way down and you can start to make some different areas of support and resistance that are important to the chart for instance usually it’s like these types of areas at the break that are important and when you start to see volume really pick up something like this this is when it’s time to really pay attention so this is january 2021 and when you see this big big volume candle getting close to resistance that’s when you know that it’s almost time to go so as i said this is a rounded bottom reversal and then obviously you know what’s next is price uh went really strongly and then obviously died since that time it’s never never really quite recovered but again you can still see the same characters characteristics as you saw before big blow off top big candle nukage like negative 30 percent consolidation and then it makes another leg down negative 70 percent from that area and then high volatility and um then a reset you know bearish market structure and then lower high so it goes from 140 to 450 or 470. um it’s important to also understand that the longer that price takes in an accumulation area the stronger it is so that’s that’s something to really um take into account is that the stronger the longer that it generally takes consolidating the stronger the next move will be so for instance because this one accumulated for much longer uh than than this may time period you know that’s that’s that’s why this move this proceed the proceeding proceeding move was much stronger uh let’s look again let’s look at some older coins as i said i should have been more prepared i’m sorry this was but you’ll notice that all of these types of patterns have like as i said they have very similar they’re very similar um they’re very similar reversal patterns um and it’s also important to understand too that the context is different now than it was back in like 2019 like 2019 was a really bad time for all coins um because it was just like a massively bearish market structure for like 2018 and 2019 like you know that’s when you saw bitcoin dominance like at all time high levels basically and all coins were just really hard to trade back then i know i sound like a crypto boomer like when i say that but it was just very difficult uh so like the patterns that you see for reversals are not quite as beneficial in these in these examples for older coins because um it was just such a bearish market structure so like double bottoms like you can see this is kind of like a double bottom but even still like it’s still just like another lower high that was formed you know and then price nuked lower obviously we all know what happened there in march 2020 uh so to summarize and to overall like finish up oh i also want to look at um really quick actually and also solana let’s look at solana first so solana had a different type of price action um it doesn’t necessarily always have to look like what i showed you with avax or other coins but if the coin is really strong what we see here for something like solana was we saw this initial market nuke obviously from 60 to 20. so significant you know downtrend there lots of volatility initially you can see this high cell volume right right after the candles and this one made some higher lows and lower highs this one didn’t quite have the rounded bottom structure that we saw with avax this one instead had some sort of like just consolidation where you have like lower highs and higher lows um and i was really concerned about this one actually because i thought that this support level around 20 was getting like beaten up every time but um in reality this was just like you know this was the bottom so you know we sought to see solana do really well but the first two steps are the same where you see big market nukage and then you see high volatility followed by for this example you saw lower highs and then higher lows so generally you’ll see like patterns like this where it’s like this to a degree i mean obviously this wasn’t wasn’t so pronounced but but you’ll get some consolidation where um where price you know and you still see like volumes drying up as well but yeah you’ll you’ll get some similar type of patterns like this four very bullish coins let’s also look at dot too i always like to cite dot because dot is a coin that really looks like bullish accumulation but it has many of the same principles as i said before like as i said it always starts with the high big market nukage you always see like the negative 60 candle and you always see high volatility right after there but after that you start to see just like you still see this kind of overall consolidation period where you don’t really see any um you don’t see really new highs or if they are their deviations like this and you generally see kind of equal lows or so you don’t really see lower lows but it’s important to understand that this context here you’ll look to see that volume has mostly died off you’ll see the candles are very thin there’s not much volatility and you’ll just look for the ranging price action and as i said the longer that this chops around and accumulates the the harder that it usually moves so as i said after the consolidation period of nearly uh three or four months that’s when this thing exploded from basically like three bucks all the way up to uh you know 50 bucks at the highs but as i said every single bottom is different like it that that bottom that it had at the end of the summer of 2020 is different than the one in may of 2021. again this is the similar one to avax um that we saw before so what am i looking at in terms of this current market structure this market structure obviously is different than what we saw in may right because may was just like a total big shake out where we see like negative 70 within like a week and then we’re just done this is a much more consistent grinding down where we’re seeing like you know we’re seeing stuff like this where it’s like like just lower highs and lower lows it’s just like this whereas back in may it was just straight up boom you know you’re done and then like high volatility so what i’m really looking for at this point is i’m looking for um i’m looking for one last shakeout i’ve been pretty i’ve been pretty um you know pretty open about that is i think there’s going to be we’ll not shake it i don’t know where it’s going to be uh but i think maybe we’ll not shake out and then accumulation can occur so you know maybe this goes down to like 10 bucks again i don’t know that’s where it was at the july lows um i never could have imagined this being this low but here we are you know and uh yeah this is kind of what i’m expecting overall for this type of market structure is one last shakeout followed by high volatility and then we see some sort of rounded bottom or like something like we see at dot back in 2020 is we’re just like accumulate for a while either way i will say that i think it’s unlikely that this has like a v-shaped reversal um i don’t think that that’s really going to happen anyways i hope you guys enjoyed this video um please let me know if you guys have any other questions with regards to uh these types of charts



Summary

Step one to go over it again is big massive nuke step two would be high volatility after that step three would be like bearish mark structure on lower time frame charts step four would be like lower volume lower volatility and step five would just be like confirmation of the break with volume um and that’s that’s what we saw back in may and june and july and for this market structure as i said it’s going to look somewhat similar when we see maybe one last shakeout but let’s just see .

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