In this latest weekend crypto update, we take a look back at the evolution of cryptocurrency prices over the last few days. While Bitcoin is just shy of the $31,000 mark, Ethereum is still unable to break the $2,000 barrier. This situation must change if we are to see any upward momentum in altcoins, which have been trading below technical resistances for several months now.
Since our previous weekend crypto updatethe market rebounded to a technical level of $1,034 billion. Total cryptocurrency capitalization is now on its major resistance zone at $1,130/1,150 billion. This technical level is the last bastion before capitalization can return to its 2023 highs.
For the moment, total capitalization is simply on the upper bound of a range in which it has been moving since May 2022. So, in this kind of situation, patience is the best solution. In this context, to hope for powerful momentum with a return to $1,300 billion, a clear breakthrough of the current resistance zone is required.
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Is the altcoin bounce coming to an end?
When we exclude the capitalization of bitcoin and ethereum, we have to admit that the situation is quite different from a technical point of view. Although there has been a rebound in recent weeks to the $305 billion area, the price has much less buying power, reflecting the lack of buyer interest in altcoins.
For altcoins to really regain buying momentum, they will need to break through initial resistance at $340 billion (formerly a major support). If the market manages to break out of this, it will allow us to move towards the pivot at $360 billion.
Until these two technical levels are regained, it will be particularly complicated to see altcoins rally towards resistance at $400 billion. So, until we have proof to the contrary, the momentum is rather favourable to the downside, with a return below the current lows to be envisaged.
Bitcoin is king, other cryptocurrencies are on the sidelines
As far as the price of the king of cryptocurrencies is concerned, it has to be said that the current trend is upwards. For the first time since 2021, BTC’s dominance is back above 50%.
From now on, the king of cryptocurrencies’ dominance is back below a technical zone at 52.5/53.15% (grey zone). If BTC manages to break out of this and continues to suck in some of the market’s capital, it will gradually head towards 57.25%. For the time being, momentum is clearly bullish, making this a technically feasible scenario. For the time being, as long as BTC remains above its previous major resistance (blue line), its momentum will remain bullish.
Has Ethereum reached a dead end?
For Ethereum, there’s not much to add since last week, as the trend is still bearish, which explains the powerful rise in dominance of the king of cryptocurrencies over the last few days. Still under oblique resistance since September 2022, it’s clear that Ethereum is not the market leader in 2023.
Currently on technical support, the loss of this level will probably lead ether to regain its previous lows against bitcoin. So, if we don’t want to see a powerful fall in the price, ETH needs to bounce off the current technical level in order to break free of oblique resistance, the current bulwark against a price reversal.
DeFi’s cryptocurrencies slow to a crawl
For DeFI, a fine rebound has taken place in this sector’s assets. However, what’s worth noting is that the market’s previous notable support is proving to be resistance at present. Will the share price be able to break through? What’s more, the technical level at $41.60 billion is in confluence with a second resistance, this time oblique.
To see an upward trend reversal, these two resistances will have to be broken on the upside, enabling the share price to move towards $47 billion. So, as long as capitalization remains below these levels, the correct bias is bearish, with a return to $35 billion.
Here we are at the end of this technical analysis of the crypto market! It’s clear that the king of cryptocurrencies has continued to rise, taking over 50% of market capitalization on its own! Ethereum, clearly in a weak position, has to some extent brought altcoins into its underperformance. Just look at the capitalization of altcoins or that of the DeFi cryptocurrencies. Both under resistance, this demonstrates an unfavorable context for these assets that could last for several months yet, as long as Ethereum does not regain strength.
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