In this new crypto point of the weekend, we will take a look back at the evolution of cryptocurrency prices over the past few days. While Bitcoin is on the verge of $31,000, Ethereum still can’t get past $2,000. This situation must change if we wish to witness a bullish momentum on the side of altcoins which, for several months, have been evolving under technical resistance.
Since our previous point crypto du week-end, the market rebounded from a technical level at $1.034 billion. Now, the total cryptocurrency capitalization is on its major resistance zone at $1,130/1,150 billion. This technical level is the last bulwark before the capitalization can return to its 2023 highs.
For the moment, the total capitalization is simply at the upper limit of a range in which it has been evolving since May 2022. So, in this kind of situation, patience is the best solution. In this context, to hope for a powerful momentum with a return to 1,300 billion dollars, it will be necessary to break out of the current resistance zone.
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Is the altcoin rebound coming to an end?
When we exclude the capitalization of bitcoin and ethereum, it is clear that the situation is very different from a technical point of view. Although there has been a rebound in the past few weeks from the $305 billion area, the price has much less buying force, indicating a lack of buyer interest in altcoins.
For altcoins to truly regain a bullish momentum, they will need to break through initial resistance at $340 billion (formerly a major support). If the market manages to overcome it, it will take the direction of the pivot at 360 billion dollars.
Until these two technical levels are regained, it will be particularly difficult to witness a bullish recovery in altcoins towards the resistance at $400 billion. Thus, until proven otherwise, the momentum is rather favorable to the downside with a return to consider below the current low points.
Bitcoin is king, other cryptocurrencies are on the sidelines
Regarding the course of the dominance of the king of cryptocurrencies, it is clear that the trend is current in favor of an increase. For the first time since 2021, BTC’s dominance is back above 50%.
Now, the dominance of the king of cryptocurrencies is back below a technical zone of 52.5/53.15% (grey zone). If BTC manages to overcome this and continue to suck up some of the capital from the market, it will gradually move towards 57.25%. For now, the momentum is clearly bullish, making this a possible technical scenario. For now, as long as BTC is moving above its previous major resistance (blue line) it will hold bullish momentum.
Is Ethereum at an impasse?
For Ethereum, there is not much to add since last week since the trend is still bearish, which explains the powerful rise in the dominance of the king of cryptocurrencies in recent days. Still under oblique resistance since September 2022, it is clear that Ethereum is not the market leader in this year 2023.
Currently on technical support, the loss of this level will likely lead ether to regain its previous lows against bitcoin. Thus, if we do not wish to witness a powerful fall in the price, ETH must be able to rebound on the current technical level in order to overcome the oblique resistance, the current bulwark against a reversal of the price trend.
DeFi cryptocurrencies are slowing down
For DeFI, a nice rebound in assets in this sector has taken place. However, what is worth noting is that the market’s previous notable support turns out to be resistance at this time. Will the capitalization price be able to overcome it? Moreover, the technical level at $41.60 billion is in confluence with a second resistance, this time oblique.
To witness an upward trend reversal, these two resistances will have to be broken on the upside, which will allow the price to take the direction of $47 billion. Thus, as long as the capitalization evolves below these levels, the bias to have is bearish with a return to $35 billion.
Here we are at the end of this technical analysis of the crypto market! It is clear that the king of cryptocurrencies has continued to rise, allowing it to increase to more than 50% of the market capitalization for itself! Ethereum, clearly in a weak position, somehow brought altcoins into its underperformance. Just look at the capitalization of altcoins or that of DeFi cryptocurrencies. Both under resistance, this demonstrates an unfavorable context for these assets which could last a few more months as long as Ethereum does not regain strength.
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