🎯 The SMALL CAPS (small companies) have just given one of the most powerful technical signals of the year… 📢Seasonality suggests rises and #ALTCOINS could be the big beneficiaries of this
What is the Russell 2000 ( small caps index ) showing us and why is it KEY for the #crypto world⁉️
👉 Golden Cross + Bullish Channel ▪️The Russell 2000 index formed a golden cross ( 50-day moving average crosses above the 200) ▪️In addition, he did it within a very clear ascending parallel channel. ▪️Historically, this pattern proved to be BULLISH according to technical analysis.
🗓 SEASONALITY of the Rusell 2000 -Historically, small caps tend to take off strongly at the end of the year -That movement usually begins between September and November.
📉 Extreme downward positioning and potential short squeeze ▫️Hedge funds still maintain EXTREME short positions in small caps. ▫️The last week marked the highest number of shorts since December 2023. ▫️This means that a massive "short squeeze" could be triggered if the rise accelerates. ▫️And this is not something I say, it is commented on by BANKS like Barclays.
💥 Small caps and altcoins have a direct relationship Both classes of assets are highly speculative, sensitive to loose financial conditions. ▪️Every time small caps surged strongly, altcoins followed with enormous returns. ▪️They are the assets that best capture the "risk appetite" in the market. The relationship exists because small caps and altcoins play the same role in different systems.
📍In a bull cycle, money usually first enters the large benchmarks (SP500, #Bitcoin) 📍Then, when confidence grows and large assets have already risen, flows shift towards riskier assets: small caps in stocks and altcoins in crypto. 📍If the pattern repeats, October could be the start of a rotation towards risk assets such as small caps or altcoins.
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#Companies Expand Crypto Reserves 🔥BOMBAZO🔥
🎯 The SMALL CAPS (small companies) have just given one of the most powerful technical signals of the year…
📢Seasonality suggests rises and #ALTCOINS could be the big beneficiaries of this
What is the Russell 2000 ( small caps index ) showing us and why is it KEY for the #crypto world⁉️
👉 Golden Cross + Bullish Channel
▪️The Russell 2000 index formed a golden cross ( 50-day moving average crosses above the 200)
▪️In addition, he did it within a very clear ascending parallel channel.
▪️Historically, this pattern proved to be BULLISH according to technical analysis.
🗓 SEASONALITY of the Rusell 2000
-Historically, small caps tend to take off strongly at the end of the year
-That movement usually begins between September and November.
📉 Extreme downward positioning and potential short squeeze
▫️Hedge funds still maintain EXTREME short positions in small caps.
▫️The last week marked the highest number of shorts since December 2023.
▫️This means that a massive "short squeeze" could be triggered if the rise accelerates.
▫️And this is not something I say, it is commented on by BANKS like Barclays.
💥 Small caps and altcoins have a direct relationship
Both classes of assets are highly speculative, sensitive to loose financial conditions.
▪️Every time small caps surged strongly, altcoins followed with enormous returns.
▪️They are the assets that best capture the "risk appetite" in the market.
The relationship exists because small caps and altcoins play the same role in different systems.
📍In a bull cycle, money usually first enters the large benchmarks (SP500, #Bitcoin)
📍Then, when confidence grows and large assets have already risen, flows shift towards riskier assets: small caps in stocks and altcoins in crypto.
📍If the pattern repeats, October could be the start of a rotation towards risk assets such as small caps or altcoins.
Source: TME