The market is patient, but investors are getting impatient, it has to be said that the cryptocurrency market is in a particularly calm situation with a low volatilityan excessively long range and altcoins which seem to be at a standstill or in a steady decline.
However, this shouldn’t force you to disconnect from the charts, as there are always interesting findings to be made regarding the coming weeks. Today, as previous analyses could be similar over the weeks with the low time units, we’re going to take a step back and determine the areas from which the market extricate itself to resume in volatility.
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Crypto currencies on a major weekly pivot
For total market capitalization, the price is in a wide range between $974 and $1,244 billion (shown in orange). The summer of 2023 was particularly calm with the market moving sideways into the upper limit. Approaching the range pivot à 1,100 billion So, what direction will we take when we return to the market in September? Depending on how the share price reacts, the dynamics we’ll be seeing over the next few months could be as follows totally different.
So that buyers can preserve their favorable position, a rebound on the pivot will be necessary in order to reach the upper limit of the range. For the time being, although we may prefer a bullish biaswe are in a certain uncertainty as to how capitalization will be drafted. Indeed, a pivot break will drive the market towards the lower bound at 974 billion, the last bastion before a return to lows at the end of 2023.
Bitcoin and Ethereum still leading the way in altcoins
When we compare the total market capitalization and that of altcoins, we can see that the rebound experienced by altcoins was much weaker than that of the capitalization including bitcoin and ethereum. As a result, it’s clear that we’re facing a year 2023 that is punctuated by bitcoin and ethereumleaving the vast majority of altcoins on the sidelines in favor of a few narratives on various blockchains.
Following a rejection on resistance, the price is also on the technical pivot of the range at 337 billion, the last bulwark before a return to $291 billion. So, what we’ve said about total market capitalization also applies to altcoins, which need to bounce back as quickly as possible to preserve current support. If they fail to do so, capitalization will return to its low points of last year
Unfavorable dominance trend for the rest of the cryptocurrencies
Concerning the dominance of the king of cryptocurrencies, this is progressing quietly with a bounce off previous resistance (red right). This testifies to the dynamic in which the king of cryptocurrencies has been established for several months, that of a liquidity aspiration to the detriment of ethereum and altcoins, such as MATIC to name but one.
This largely explains the differentiation that takes place between total market capitalization and that dedicated solely to altcoins. As a result, as long as the price remains in this dynamic, it will be difficult to achieve significant gains in ethereum and altcoins at the same time. So, if we are to hope for a reversal of the dominance’s downward trend, we’ll need to keep an eye on a « new » trend. reintegration of the range with a weekly close.
Ethereum underperforms, altcoins line up
To conclude this analysis, we won’t look at DeFi’s capitalization, which hasn’t changed much since last week, so we’ll close our remarks with the situation of the ETH/BTC pair on a weekly scale. For several months now, it has been clear that the is bearish with multiple rejects under a great deal of resistance.
Currently under resistance, will ETH continue to falter against the king of cryptocurrencies by getting rejected for the umpteenth time? If so, the asset should head for the 0.060BTCThis is the technical level at which the price has been holding for several weeks now. However, for Ethereum’s bullish recovery to take hold, with a rebound in altcoin capitalization, the technical confluence (horizontal and oblique resistance) will have to be breached on the market.
This brings us to the end of this weekend’s crypto update. As you may have gathered, the majority of the market continues to lateralizeand is now on relatively important technical pivots, since a downward break could lead to a powerful market plunge. So, the days ahead will be interesting and will be able to bring a little more volatility to the market. In any case, for a bullish rally in altcoins to take place, it will have to translate into a gain in ETH/BTC strength.
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