Small ripples create great waves XRP/USD

21. Okt. 2021

Bitcoin sets a new all-time-high at 67K USD and it is important to understand how the money flow in crypto works.

1. Bitcoin rallies into resistance ->
2. Bitcoin gets traded for Big Cap Altcoins ->
3. Big Cap Altcoins rise and rally into resistance ->
4. Money leaves Big Caps and then moves into Mid Caps ->
5. Mid Caps rise and rally into resistance ->
6. Money leaves Mid Caps and then moves into Small Caps ->
7. Small Caps rise and rally until altcoin season is over ->
8. Altcoins finally sell down and trade back to Bitcoin ->
9. Bitcoin rallies and then sells back into fiat/stablecoins until cycle resets.

That being said, Bitcoin has run into resistance and the BTC.D (Bitcoin Dominance) has been decaying. This usually occurs as money rotates out of BTC and into Big Cap Altcoins thereby sparking the beginning of 'Altcoin Season'.

Hence, XRP/USD lies dormant with a similar micro structure to LTC/USD. Should local support hold (1.10USD) then an impulse breakout to 1.25USD or higher is likely.

Conversely, losing local support will likely cause a sell down to Major Support around 1 USD.


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