Kaspa In Relation To Bitcoin

Sep 24

In a recent update in one of my Bitcoin trade-ideas, I mentioned the relationship between Bitcoin and the big Altcoins projects, these tend to move together. When Bitcoin isn't clear, we can look at other Altcoins such as Solana and Ethereum to either confirm or negate what we see on the Bitcoin chart. Kaspa is also one of the giants and tends to move with Bitcoin. While there are some variations, the bigger trend is mostly the same.

Here we can see that Kaspa peaked 15-September. We can see that it has been closing red for the past three days. KASUSDT is bearish and moving lower.

The biggest volume bar is a bearish day, 5-August. The highest volume since November 2023.

Kaspa being bearish supports a bearish potential for Bitcoin on the other Crypto-giants, because they all move together and in the same way. If this one goes down, the others go down. If this one goes up, the others go up.

Of course, it can happen that Bitcoin, Solana, Ethereum, Binance Coin, Toncoin and Tron resume higher and thus we would see Kaspa doing the same; but we are looking at bearish consolidation below resistance with a bearish tendency based on the recent drop in early August.

Unless Kaspa moves above its ATH, this chart setup remains bearish.

Namaste.

Oct 10

Trade active

This one is going perfectly as charted. Let's have a look:

I only moved the red arrows a little bit to the right so that we can see the candles.

➖ Kaspa (KASUSDT) is one of the giants and moves with the rest. Here we can see that it moved below the 6-September low, a warning signal for all the other big Altcoins that are still trading above this level.

➖ The 5-August low on wick is already being challenged.

➖ We have a perfect downtrend but no significant volume. This means that it is still early in the move and high volume tends to come in when the action intensifies.

➖ There is potential for much lower.

I looked at many of the other Crypto giants and while they move together they don't all have the same chart. This one, Ethereum, Tron and Bitcoin are all quite different in several ways... Doubt pops-up when considering these differences but experience tells me that price action is the main signal. If it is going down, it is going down. We were predicting a drop and this drop is happening. The logical conclusion is simply the continuation of the current move.

A very strong lower high can translate into a very strong lower low.

Notice the two resistance levels in yellow, the second one wasn't even challenged. The momentum is leaning toward the bearish side.

Since the smaller Altcoins have to recover and grow, the drop is more controlled rather than super strong and fast in order not to cause panic. Noice how it goes day by day slowly, but still down. Nothing like in August.

When the drop is reaching its end, I think at that point we will see speed.

Here is the weekly chart:


Red now for four weeks.

Namaste.