We?ve been watching the crypto market for years and while there have been periods where altcoins move faster than BTC, there has never been a time where altcoins can be considered a ?good leading indicator? for BTC.

Why bring this up? Because as the charts below show, Large altcoins have already dropped below recent lows, and this led to a spike down (see LTC chart below ? very similar patterns for ETH, XRP and other large altcoins). Altcoins have shown a slight increase in volume on this drop, but everything is still trading at very low volumes which means we could see BIG MOVES either way, and for now that way is DOWN for altcoins.

Takeaway for Altcoins is they have a LOT to prove before they are a high probability trade, and it?s much safer to wait for a strong recovery than to buy any dips just yet.

WHAT DOES ALL THIS MEAN FOR BTC ?

If you trust historical patterns, altcoins moves don?t mean too much for BTC, but they are worth noting. There are a few bullish signs you?ll see on the BTC chart, but until we see a strong reversal above $7250 (that holds ? we just had a big head fake?that?s what low volume trading can do!), the edge is currently with the BEARS so watch price action carefully if we drop below recent lows in the $6500 range.

FINAL NOTE: We are coming up on YEAR END ? this does mean SOMETHING in the world of trading, so trading opportunities may arise soon ? we?ll be watching and updating.