Altcoins remain low key – Since the beginning of the year, very few alts have managed to fully express themselves. The same corner had a hype especially with the Pepe who panicked the counters. Also, altcoins with a link to artificial intelligence were able to express themselves. However, the majority of altcoins are suffering, even though Bitcoin and Ethereum have been strong since the start of 2023. Are altcoins ready to rebound? Binance Coin (BNB) is the asset of the week. While the SEC is at war with Binance, how is BNB reacting to this attack? Let’s analyze the situation on Ethereum and altcoins.
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The capitalization of altcoins is being rejected at the level of institutional bias
Currently, investors are turning away from altcoins. From a technical point of view, the course was rejected at the level of institutional bias (EMA 9/EMA 18) bearish, and at the level of the bullish trendline :
Altcoins send a bearish signal with the break of this trendline. You would have to quickly get back above this level to be bullish on altcoins again. If this scenario plays out, the objective of the buyers will be to close the price above the last high marked at $661 billion. In fact, a break in the weekly resistance would allow altcoins to express themselves and, perhaps, to find the capitalization of altcoins around 950 billion dollars. On the other hand, in the event of a new rejection, the price could move towards the next support located at 480 billion dollars. This would then be another blow for altcoins.
The RSI evolves at the level of the bullish trendline, a rebound could occur in the coming days. If a rebound occurs, buyers would keep the momentum. A break of this trendline would send a new bearish signal.
Towards a rebound in Bitcoin dominance?
For several weeks, the dominance of Bitcoin has been evolving between the last peak marked at 48.9% and the last low marked at 46.9%. Bitcoin dominance is trying to bounce at the level of the bullish institutional bias:
To restart the bullish momentumprice should develop above the last high marked at 48,9 %. A close above this level would restore momentum with bottoms and rising tops, and the capital would continue to flow into BTC. However, if the price makes a lower high than the previous one, the altcoins could benefit. For this, it would be necessary to close below the monthly resistance at 47% of dominance (Red Arrow). A strong rejection below this level would make it possible to return to the range located between 47 % et 40 % dominance of BTC. In this case, the altcoins could finally express themselves.
The RSI sent a bearish signal by breaking the bullish trendline. This marks an end of momentum on the RSI, it should continue to develop downwards. For this, a fence below 50 would be interesting.
Ethereum price remains in limbo
For several months, the price of Ethereum has been in theindecision. Indeed, the price evolves around $1,850 since mid-April. To relaunch the momentum, the price would have to close above the last high at $1,930. A fence like this would mark a double bottom :
However, buyers will have to get rid of the weekly resistance located at $2,000. This psychological round number must give way for the price to rise again and regain the resistance at $2,400. Attention, a rejection at the level of this resistance could send the price back to the level of the bracket at $1,700. A close below the last low marked at 1 740 $ would sign a double top. From now on, we have to wait for the decision taken by the course.
Ethereum continues to be strong against Bitcoin
Ethereum being the leader des altcoins, it is interesting to look at the balance of power between Ethereum and Bitcoin. For more than two years, the pair have been stuck in a range located between 0,06 BTC et 0,08 BTC :
The course recently marked a DETOUR below the intermediate rack support. The buyers managed to recover the support, and the price is now trying to break the bearish trendline. To confirm, the price would have to close above the last high marked at 0.07 BTC. A close like this would rekindle momentum with bottoms and bottoms. In this case, the price could return to the level of the monthly resistance. Whoever happens, it will be necessary to get rid of this resistance so that Ethereum can fully express itself.
The RSI sends a bullish signal by breaking the bearish trendline. To confirm, the RSI must continue to show ascending lows and highs. A fence above 61 would be interesting and would allow buyers to maintain the momentum.
Binance Coin (BNB) is the altcoin of the week
L’exchange Binance is at war with the SEC. Therefore, it is interesting to look at the behavior of the flagship cryptocurrency of the world’s number 1 platform. If the SEC attack caused sell at BNB price levelthe situation is not catastrophic for the moment:
The course is back at the level of the bracket at $260. This is an important level because it is the intermediate support of the weekly range located between $330 and $220. Buyers need to defend this level to avoid breaking support. A breakout of the range’s intermediate support could bring the price back to the level of the bottom of the range at $220. If the buyers react here, the price could rebound and return to the level of the resistance at $330. Whatever happens, buyers aim to retain supportand to close the price above the last high at $350. A close in this way would allow the price to return to the level of the next resistance at $430.
The RSI sends a bearish signal with the break of the bullish trendline. This level should be quickly reintegrated so that the buyers can maintain the momentum.
The capitalization of altcoins was rejected at the level of the institutional bias, and the price broke the bullish trendline. Buyers need to react quickly to avoid another wave of declines. Bitcoin dominance is rebounding at the institutional bias, but it will need to close above the latest high at 48.9% to keep money flowing into BTC. This is a scenario that would not allow altcoins to express themselves. Ethereum price has been in limbo for several weeks, but a close above $1,930 would mark a double bottom. Whatever happens, the resistance at $2,000 will have to be broken. Also, the ETH/BTC pair continues to be strong, the price must close above 0.07 BTC to confirm the momentum.
For its part, Binance Coin is back at the support level at $260. The buyers are going to have to defend this level to avoid sliding dangerously towards the bottom of the range at $220. A bounce here would give buyers a fresh opportunity to break the resistance at $330. Despite the recent SEC attack on Binance, the pair remains stuck in a range between $330 and $220. In this context, will the BNB break the support?
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