In this new weekend crypto update, as on every Sunday, we’ll have the opportunity to look back in part on the previous analysis in this column. Then, we’ll look at the developments that have taken place in cryptocurrencies, and the key levels to watch out for in the scenarios that will be discussed. With the market approaching its monthly close, volatility has yet to return, which leads us to believe that August will follow the same dynamic. But will this really be the case? Let’s find out on TradingView.
Low-amplitude rebound on capitalization, will sellers take over?
After holding above $1,160 billion for several days, a technical threshold particularly visible on the H4 scale, the market failed to rebound. As a result, sellers temporarily took control, bringing market capitalization back to the $1,128 billion mark. The challenge now lies in maintaining this key level, preserved since the end of June.
If the market capitalization breaks to the downside, then the first technical target lies at $1,036 billion, a pivotal level to which the market has reacted on numerous occasions, either as support or resistance.
However, from a more general point of view, the market is simply at the upper end of the range in which it has been moving for several weeks. As long as the market remains between $1,244 and $974 billion, there is nothing to report in the sense that there is no clear trend in market capitalization. The specific capitalization of altcoins will not be addressed in today’s analysis, since the situation is identical to that of last week, with the price currently on technical support that needs to be preserved in order to return to $380 billion.
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Aborted rebound for the king of cryptocurrencies
After a fine bullish breakthrough, the king of crypto-currencies now finds itself in a key moment, as it is back below the major level at 49.70% dominance. On the daily scale, it appears that dominance is in trouble, as it has not bounced off this technical threshold.
What’s at stake now is whether the cryptocurrency king’s dominance can regain this technical level (red line), which will mean he’s still in a strong position. However, if dominance breaks down this key level with a clean close (which seems to be happening now), then the upper boundary of the previous range will be the last bastion before a powerful decline in dominance. Having never been retested after being broken, will the level operate as a support? We’ll find out in the weeks ahead.
Ethereum, a less perceptible influence on cryptocurrencies?
ETH is below a major level against the king of crypto-currencies, a weekly pivot that needs to be regained as soon as possible in order to regain bullish momentum over the coming weeks. If Ethereum manages to break free of this, it will be heading back towards 0.067BTC. To achieve this, however, some buying pressure will be needed.
Otherwise ether price would be unable to retake the weekly pivot zone, then it will initially take the direction of its recent low point. Should it fail to hold this technical level, the way will be open for a return to 0.053 BTC. For the time being, the bias is bearish until the pivot zone is regained, with an outright bullish close.
DeFi cryptocurrencies gradually recovering
For DeFi cryptocurrencies, there’s nothing special to add, as a bounce is currently taking place on the $41 billion level. As long as this level is defended, the bias is bullish, with a technical target at $47 billion. However, if capitalization fails to return to this level, and the price falls back below $41 billion, then DeFI’s cryptocurrencies will have to head for $35 billion.
Here we are at the end of this market analysis, your crypto update for the weekend. It’s clear that the situation is broadly similar in terms of total market capitalization, as well as that of altcoins. However, the dominance of the king of crypto-currencies is beginning to slip, raising the alarm that bullish momentum is weakening. In this context, if Ethereum were to resume its pivot, it would provide a window of opportunity for altcoins to resume their bullish momentum. In this context, August will be particularly interesting, as it could give an idea of what September will be like.
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