Capital turnover towards altcoins? – Imagine being in possession of $320,000 without knowing it, because you lost it in the fork leading to Ethereum (ETH) and Ethereum Classic (ETC). It’s a crazy story told by Coinbase’s product manager. Meanwhile, Bitcoin marked a new high in 2023, briefly rising above $31,500. For the time being, altcoins remain on the back foot, like Ethereum, which is more than 10% off its last high in April. Altcoins continue to underperform BTC, but could altcoins finally find a way to express themselves after six months largely dominated by BTC? Aave is the altcoin of the week, posting a one-week rise of almost 15%. We’re off!
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Altcoin capitalization stagnates at around $550 billion
Despite recent requests for Bitcoin ETFs by the investment giants, altcoins are struggling to regain a clear upward momentum. Altcoin capitalization has recently rebounded to the level of the 500 billion. However, it stalled at the institutional bias (EMA 9/EMA 18) bearish :
The momentum is still there fragile since top local marked at the resistance at 670 billion of dollars. In fact, troughs and peaks are descending. We need to find a upward momentum. Buyers are aiming to break this resistance to try to return to the level of the next resistance at $950 billion. On the other hand, if the share price falls, the next support is $500 billion. However, this would be an opportunity for buyers to mark a double bottom at support level.
The RSI is back in contact with the bullish trendline. A rejection could come into play here. We would need to build a dynamic with ascending troughs and peaks on this momentum indicator.
Is Bitcoin’s dominance finally showing signs of running out of steam?
For several months now, the is clearly bullish on Bitcoin’s dominance. The 9 and 18 moving averages have supported the price since January 2023. From then on, capital flows to the king of cryptocurrencies :
The price marked a local top at 52.2 and could return to the institutional bias to regain strength. A rebound could bring the share price back to the level of the resistance at 53%.. BTC’s dominance hasn’t been at this level since April 2021. After several months of upward movement, is it time to bet on altcoins ?
RSI seems to have trouble staying above the bullish trendline. If the RSI continues to develop under the bullish trendlinewould indicate a shortness of breath on the sales side.
Ethereum price set to break $2,000 resistance soon?
Ethereum still trading below last marked high at $2,140. Ethereum price stagnates below 2 000 $. For the time being, buyers are unable to break the resistance at $2,000. Even so, the price continues to move above the uptrendline initiated at the end of 2022 :
If the resistance at $2,000the price could return to the level of the last peak at 2 140 $. Buyers would then aim for a return to the resistance at $2400. On the other hand, if the price slips, and the bullish institutional bias does not allow a rebound, the price could fall towards the support at $1,750. Even if this scenario were to unfold, the overall momentum would remain bullish. Buyers must hold on to the last low at 1 625 $.
For its part, the RSI is back to the level of the bullish trendline. A rejection here is entirely possible. The RSI would need to regain momentum with ascending lows and highs above the uptrendline. For the time being buyers don’t have a clear grip on momentum.
Towards a rebound for ETH/BTC?
The ETH/BTC pair continues to mark descending peaks and troughs since the top marked approximately a year ago. As a result, the price is slowly approaching the bottom of the range around 0.06 BTC. A rejection at the 9 and 18 moving averages could bring the price back to the support :
The ETH/BTC pair is still stuck in a range between support at 0.06 BTC and resistance at 0.08 BTC. A rebound at the bottom of the range is required to avoid a break. A break in the support at 0.06 BTC would be a very bad omen for altcoins. In the event of a rebound, the price will have to break the double resistance with the mid-range level and the presence of the bearish trendline. This has been pushing back the price since September 2022.
The RSI could mark a bullish divergence in the event of a rebound here. This would show that sellers are running out of steamand Ethereum’s price could benefit.
Aave is altcoin of the week (+15%)
Aave is one of the best-performing altcoins over one week. In fact, it has a 15% rise in one week :
Since the rebound found at the support at $54the price climbed 50 %. For the time being, the share price continues to trend below the bearish trendline initiated in May 2022. The price is trading at the support at $70a rebound here could bring us back to the resistance at $85. Then, a break of the downtrendline and the resistance at $85 could allow the price to return to the resistance at $105. However, if the price is rejected here, it could return to support at 54 $. Buyers will need to defend this support. The RSI has broken the bearish trendline and this led to bullish volatility. It will be necessary to build a dynamic with ascending troughs and peaks to continue the upward trend.move upwards.
In the end, while Bitcoin marks a new high in 2023, capitalization stagnates at around $550 billion. In the event of a further fall, the price could return to the $500 billion support level. Bitcoin’s dominance is still bullish, but it is showing signs of running out of steam. Could altcoins benefit from this? For its part, Ethereum needs to break through resistance at $2,000 to attempt a new high in 2023, above the last peak at $2,140. If buyers push, the price could even return to resistance at $2,400. As the ETH/BTC pair approaches the bottom of its range, a rebound could take place, enabling it to stay within the range established two years ago. A bullish divergence even seems to be taking shape, and this shows that sellers are running out of steam.
Aave is one of the best-performing altcoins this week. The price is up 15% in one week. The price is back at support at $70, and could bounce back to resistance at $85. Whatever happens, the price will have to break the bearish trendline initiated in May 2022 to regain some color on this asset.
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