In this new crypto point of the weekend, we will look at the evolution that the market has experienced in recent days. Ethereum had the opportunity to make a bullish push above $1900, but even so, the king of cryptocurrencies continues to oscillate weakly. In view of such a development, it is certain that a major movement is brewing for cryptocurrencies. However, will it necessarily be bullish? Without further ado, let’s head over to TradingView to try to see a little more clearly.
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The capitalization of cryptocurrencies is still in an undecided situation
The price of cryptocurrency capitalization has not changed at all for the past two weeks. Until proven otherwise, the price is still under resistance, which makes it a rather bearish situation with the lower targets which are located first at 1000 billion dollars and then, in a second step, at 920 billion dollars. .
For the moment, the capitalization continues its long evolution under resistance by crossing, at present, the level of the EMA13. A loss of $1.1 trillion with a new low lower than the previous one will undoubtedly result in a continuation of the fall. However, nothing is decided yet.
For buyers to be able to hope for a continuation of the momentum set in motion at the beginning of March, the resistance will have to be broken upwards as soon as possible to take the direction of 1.28 trillion dollars. For now, the bias to have on capitalization is rather bearish, especially since buyers have been unable to overcome this major resistance for several days.
Are the altcoins determined not to move?
For altcoins, the situation is also stable since the capitalization is identical to that of our previous analysis, dated two weeks ago. This is explained by a lateralization of the king of cryptocurrencies and a rather timid rise of Ethereum which has not succeeded, for the moment, in breaking free from 2000 dollars.
Moreover, while some altcoins are pushing higher, the situation is opposite for other altcoins which have fallen despite the evolution of bitcoin and ether. For now, the price is moving in a range. Currently at a key level, capitalization will have to rebound over the next few days to hope for a return towards 400 billion.
As long as the MA100 is not broken down, the lower limit is not the preferred target for altcoins that are in the upper limit of the range. However, we must not rely on its support since they will have to succeed in freeing themselves from the range in order to hope for a return to 450 billion dollars. For the time being, as long as the range is not broken up or down and bitcoin and ether have not made a new movement, we can opt for a sideways altcoin.
Bitcoin is quite powerful compared to other cryptocurrencies
For the dominance of the king of cryptocurrencies, the situation is still the same since our previous analysis and the identified objectives have not changed with the resistance at 48.25%. As long as bitcoin does not perform a downward trend reversal, it will be rather difficult to envisage a bullish period for altcoins. Indeed, a drop in bitcoin dominance will portend a rotation of liquidity into riskier assets within an already high risk market.
So, besides the 46.85%, the lower levels to watch in case of dominance correction are at 45.47% and 44.40%. A correction on these levels will probably do Ethereum good, but in the event of a breakout of 44.40% in confluence with the EMA200 just above, it will be a rather interesting signal in order to gain exposure to certain altcoins. .
However, nothing is settled. Bitcoin is still strong, its dominance has just rebounded again. If this situation lasts and the resistance is brought to break on the rise, it will probably be interesting to favor a larger share of the portfolio for the king of cryptocurrencies. Of course, this will depend on the context and the reaction of the price if it is brought to reach 48.25%.
Ethereum needs to be watched over the next few weeks
For the ETH/BTC pair, the situation is rather interesting. Indeed, after passing below the pivot we discussed in our previous analysis, the price managed to operate a rapid reintegration, which is rather positive. The coming weeks will be one to watch very closely on the ETH/BTC pair. How will the price react? Rejection on the EMA200 or break of this dynamic resistance to seek the MA100?
The situation is rather uncertain at the moment since a return below the pivot will be an invalidation for the buyers and will cause the asset to continue its underperformance against the king of cryptocurrencies with a price return to 0.0598BTC. However, if Ethereum manages to overcome the EMA200, it will undoubtedly take the direction of the MA100. In this context, this will give the possibility for altcoins to maintain current levels and, for some, to register rebounds of a few percent.
Decentralized finance cryptocurrencies are under resistance
For the capitalization of the DeFi market, representing the capitalization of cryptocurrencies from decentralized finance, the situation is relatively identical to previous weeks. This is mainly due to the powerful dominance of the king of cryptocurrencies and the underperformance of ether.
To hope for a powerful increase in DeFi capitalization, similar to the summer of 2022, it will partly depend on Ethereum’s ability to overcome current resistance to put the king of cryptocurrencies on the side. Currently, we are not at all in this situation, there is a long way to go to get there.
What we can see is the market cap moving below a $49.80/$50 billion resistance. This level will have to be broken upwards as quickly as possible for buyers who are considering an increase in capitalization. A failure on this level with a fall of the price below 47.30 billion dollars will open the way to 44 billion dollars.
Here we are at the end of this weekend crypto point. You can see, whether for total market capitalization or altcoins, the situation has not changed in the last two weeks. With bitcoin dominance in a strong position and ethereum still on the sidelines, it is difficult to see bullish momentum for altcoins. However, ethereum has reintegrated its pivot, could this be the first sign of a strong bullish momentum for the asset? This is what we will have the opportunity to discover over the next few weeks.
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