BTC vs ETH Structure for noticing tops.
This is something I have used through the years and that is very simple. Was shown to me by a friend who is no longer around in the space, but it is so simple it should be illegal, especially when paired with flow.
An indication when to be aware of a reversal, is when we see ETH leading in the market, and when I say leading, I mean structure-wise and not % wise.
Higher highs, meanwhile, Bitcoin lower highs.
I have used this for years to identify aggressiveness from the market, especially when we look at the orderflow, a lot of aggro longs is a bonus, in the recent case, this was true on Eth.
If I see this, I am very cautious on the buyer front, at least until structures recalibrate and both ETH & BTC move hand in hand. You can use this in the future. I will share some more examples below where a similar thing lead to a top in the market.
Check our ATH top back in October. Both ETH and BTC moving together, same structure, until Bitcoin forms a ltf lower high meanwhile ETH is still pushing.
We local topped there.
Another example here from the June highs. Look at the lower timeframe PA. ETH was making HH, meanwhile Bitcoin was struggling. People always view this ETH strength as outperformance and maybe ETH rotation coming, it's not, hasn't been for a while.
Now replicate that with our recent move up.
Such a simple concept, but the hit rate is uncanny.
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