🚨🚨🚨🚨 BREAKING 🚨🚨🚨🚨

SMALL CAPS (small caps) just gave one of the most powerful technical signals of the year…

SEASONALITY suggests INCREASES, and#ALTCOINScould be the biggest beneficiaries of this.

What is the Russell 2000 (small cap index) showing us and why is it KEY for the#cryptoworld?

Golden Cross + Bullish Channel

▪️The Russell 2000 index formed a golden cross (50-day moving average crosses the 200)

▪️Furthermore, it did so within a very clear ascending parallel channel.

▪️Historically, this pattern has proven to be BULLISH according to technical analysis.

SEASONALITY of the Russell 2000

-Historically, small caps tend to take off strongly at the end of the year.

-This movement usually begins between September and November.

Extreme short positioning and potential short squeeze

▫️Hedge funds still hold EXTREME short positions in small caps.

▫️Last ​​week marked the highest number of shorts since December 2023.

▫️This means that a massive short squeeze could be unleashed if the rally accelerates.

▫️And I'm not saying this; BANKS like Barclays are commenting on it.

Small caps and altcoins have a direct relationship.

▪️Both asset classes are highly speculative and sensitive to loose financial conditions.

▪️Every time small-cap stocks rallied strongly, altcoins followed suit with massive returns.

▪️They are the assets that best capture the market's "risk appetite."

The relationship exists because small-cap stocks and altcoins play the same role in different systems.

In a bullish cycle, money typically flows first into the major benchmarks (SP500, #Bitcoin) ). Then, as confidence grows and the major assets have already rallied, flows shift to riskier assets: small-cap stocks and altcoins in crypto.

If the pattern repeats, October could mark the start of a rotation into riskier assets like small-cap stocks and altcoins.

Source: TME