In this weekend’s crypto update, we take a look back at our latest last week’s commentsWe’ll now take a look at the scenarios we discussed and what they mean for the coming weeks on the cryptocurrency market. For the time being, it’s fair to say that momentum is limited to a range across a large proportion of the market’s assets. However, some altcoins, such as XLM, LINK and MKR, are not waiting for bitcoin and ethereum to stage a bullish rally. Without further ado, let’s head straight to TradingView.
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Cryptocurrency market on technical support to be preserved
Since last week, after the technical breach of the $1,160 billion thresholdIn our previous article, we spoke of the need for the market to stay above this technical threshold. This has now been validated, as resistance has been flipped as support for several days (green zone). However, thehe market has not bounced back with vigourwhich testifies to the buyers’ fragility. So how will the market react?
For the moment, there’s nothing special to talk about, since in terms of price, we’re on similar levels to last week, with the market continuing to evolve in a technical range zone, which can challenge the psychology of traders if they change their bias regularly. For the time being, as long as we continue to evolve in H4 between $1,128 billion and $1,183 billion, there’s nothing special to report.
Altcoins move in the wake of total market capitalization
For the altcoinsthe situation is somewhat similar to that of total market capitalization, since a resistance to 350 billion dollars was recently won and then flipped as support, giving altcoins a technical threshold on which to rest before resuming in volatility.
As you can see from the chart, the challenge now lies in the market’s ability to maintain its current level in order to rebound towards the technical zone (shown in red) at $372 billion. If the market fails to hold on to the current zone, it will head for $337 billion before potentially tumbling towards $290 billion. For the moment, we’re in the technical range. A break of this resistance would be particularly interesting, as it would enable many altcoins to post strong gains over the coming weeks.
Dominance of the king of cryptocurrencies in favour of a technical rebound?
For the time being, as of last week, there are no not much to report on the dominance of the king of cryptocurrenciesexcept for the technical rebound over the 50% dominance threshold, demonstrating that bitcoin’s strength against the rest of the market is still relevant.
From now on, we’ll have to keep an eye on the extent of the rebound. If it is unable to reach the technical threshold at 50.95%, then the first sign of a potential trend reversal could take place, which could lead to dominance below the technical threshold at 50% dominance. If this happens, with bitcoin in rangeThis could be good news for ethereum and altcoins, which could suck up some of the market’s liquidity.
Ethereum in trouble against bitcoin, will it pull through?
For the ETH/BTC pair, there’s nothing in particular to report since last week, other than the rejection (despite an ascending top) of the technical level at $0.063. At present, the price is fluctuating between this technical level and support at $0.060. As long as we don’t break out of this zone, there’s nothing special to report. The challenge now lies in resolving the ETH/BTC bullishness, so that altcoins can benefit in part from bitcoin’s liquidity..
However, there’s no guarantee that the resolution will be bullish, which leads us to consider different scenarios. It is possible that the king of cryptocurrencies preserves a strong dominance at least until the late summerwhich could lead Ethereum to fall below 0.060BTC. In this context, altcoins could follow the same dynamic, without posting any particular gains. Finally, with regard to capitalization of DeFIthe situation is exactly the same as last week. So there’s little point in reiterating what we said earlier.
This brings us to the end of our technical analysis of the cryptocurrency market. Over the next few days, we’ll need to keep a close eye on how the price reacts on the key levels we’ve identified. Depending on what happens, we’ll either continue the evolution within the range, or we’ll have a resolution that leads to one of the scenarios we’ve discussed. At present, it seems important to keep a close eye on the dominance of the king of cryptocurrencies and ethereum’s reaction to any change in direction. The balance of power between ETH and BTC is therefore crucial to the dynamic that altcoins will take on in the weeks ahead.
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