Since last week, if you’ve had the opportunity to follow the market on a daily basis, you’re undoubtedly aware of the bearish leg that cryptocurrencies have just undergone. Thus, an update of our charts being requiredIt is important to identify the technical levels at which prices must be maintained in order to avoid a « price collapse ». continued fall. Without further ado, let’s turn to TradingView to identify key levels.
Cryptocurrencies approaching low bound, reaction ahead?
Since last week, the market has failed to hold above the pivot on which he had been playing for several weeks at 1,100 billion dollars. Thus, the loss of this technical level quickly translated into a return to the lower range boundary (although it has not yet been reached).
The question now lies in the market’s ability to adapt. above this technical level by recording a higher low than the previous one. When we take a step back from the chart, we can see that we are simply back to the same levels as Juneas if the summer had finally had no « impact ».useful« Given the long period of lateralization we’ve been experiencing. So, can we expect a bearish breakout from the range? If so, the market will once again associate itself with its lows of 2023 (altcoin capitalization being similar to the one we’ve just studied, there’s little point in dwelling on it today).
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Bitcoin’s dominance marks a breakthrough gap, key moment for altcoins?
A rather surprising turn of events for bitcoin’s dominance. In our last analysis of the king of cryptocurrencies’ dominance, the situation was interesting, with a hold and a rebound on former major resistance (red line). However, over the past few days, the situation has become increasingly difficult. rather difficulte for those who were optimistic about absorbing liquidity from the king of cryptocurrencies.
Marking a downward break gapthis indicates a potential disinterest the market is gradually losing interest in one of the best-performing assets of 2023. What does this mean, apart from a return to 48.25% dominance? We can potentially opt for a a strong comeback for Ethereum in the face of the king of crypto-currencies, demonstrating how little difference there is between the total market capitalization and that of altcoins. In this context, could this be an interesting period for the future? nice gains for Ethereum and altcoins ? It’s possible, and that’s what we’re now going to try and find out with the ETH/BTC pair.
Is ethereum finally back on top?
What’s been happening since last week? After a temporary rejection and a nice bearish wick on 0.060BTC, ETH has clearly started to move upwards with a rebound in recent days. Currently below the resistance we identified on a weekly scale, will ethereum be able to break out of this resistance and head for the oblique resistance? As the last line of defence before a return to May’s resistance, everything hinges on ether’s ability to regain 0.065BTC.
If he makes it, Ethereum to confirm trend reversal in which it seems to have been involved for the past few days. However, we shouldn’t get ahead of ourselves, as the asset is still below the trend line. a zone of technical resistance for the ETH/BTC pair. What is certain is that the realization of such a bullish scenario would be welcomed by the altcoin market.
Fragile situation for DeFi cryptocurrencies
Finally, to end on this market point, we can quickly touch on the situation of DeFi cryptocurrency capitalization. Currently below a pivot, a major bearish wick has taken place, rapidly swallowed over the last few days. For this sector to operate in a more comfortable position, the price will need to regain the pivot at 41.6 billion. If the share price were to follow the upward path in parallel with a Ethereum outperformanceThis could pave the way for fine performances by many altcoins based on ethereum’s DeFi (but not only). Conversely, a rejection of the current zone could be poorly received by the market.
This brings us to the end of our analysis of the cryptocurrency market. It has to be said that the market’s recent sharp decline may be a sign of things to come. turning point in the dynamics that we will experience within the market itself. After the dominance of the king of cryptocurrencies since early 2023, is it ethereum’s turn to take the crown? If this happens, altcoins could benefit greatly, regardless of the sector. So, as August draws to a close, let’s keep a close eye on the ETH/BTC pair and the dominance of the king of cryptocurrencies over altcoin capitalization.
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