Conflicting Signals: The Big Difference Between Bitcoin and Crypto Charts
Recent comments from SEC Chairman Gary Gensler suggest that Bitcoin is the only crypto asset that is not a security. But for whatever reason, the TOTAL crypto market cap chart is giving a bullish signal, while the BTCUSD chart remains decidedly bearish.
Let’s take a closer look at these conflicting signals being thrown across the crypto market and what it could mean.
50/50: Break down the bearish or bullish signals
Last night, the February monthly candle came to an end, providing fresh data for technical analysts to consider. Technical indicators use the data in their calculations, which are also updated the moment a new monthly candle opens on the chart.
Scanning the monthly price charts for Bitcoin, Ethereum and dozens of other cryptocurrencies, a noticeable discrepancy exists between the BTCUSD chart for one month and the TOTAL crypto market cap chart for the same time frame.
The 50-month moving average discrepancies observed | BTCUSD on TradingView.com
Turning on the 50-month moving average, Bitcoin closed its second month below the key resistance level. Meanwhile, the TOTAL cryptograph spent the last two months above the same level. Keeping prices above it could result in a sustained recovery.
It’s not just the 50-month moving average that shows the conflicting signals. BTCUSD monthly Ichimoku closed through the cloud, while the TOTAL cryptograph is not even close to the cloud yet.
The Ichimoku cloud adds to the confusion | BTCUSD on TradingView.com
Bitcoin, Not Crypto: A Rising Tide Lifts All Boats
The reason for the discrepancy in price charts is due to the strong performance of small cap altcoins. Many of these less liquid coins have pushed well above their 50-month moving averages, giving an edge to the TOTAL cryptograph.
The TOTAL crypto market cap chart is an aggregate created by TradingView, which pulls price data from thousands of crypto assets traded on the platform. The exact number of coins collected is unknown and may not reflect the exact size of the rapidly growing market.
Bitcoin, on the other hand, is simply one resource, which makes the chart signals much more clear and actionable. The best cryptocurrency also has the ability to move the entire market, take the wind out of any soaring altcoin rallies or save them from the brink of extinction.
Looking at the Bitcoin chart for the clear sign is a safer bet, but the TOTAL crypto market cap which is a more sensitive aggregate of price action can provide an early taste of what’s to come. Will BTCUSD follow suit and boost broader crypto mining?
The tale of two charts: #Bitcoin under 50-month MA, $TOTAL crypto above it. pic.twitter.com/bdGrkQ0axM
— Tony “The Bull” (@tonythebullBTC) March 2, 2023
