In this new crypto point of the weekend, we will analyze the evolution that cryptocurrencies have experienced in recent days, rather rich in volatility on the scale of the range in which we have been evolving in recent weeks. Has there been a change on the altcoin side? This is what we will see as soon as possible by going to the charts without further delay!
This market analysis is brought to you in collaboration with CryptoTrader and its algorithmic trading solution finally accessible to individuals.
Cryptocurrencies are in the midst of a battle with a major level
Since last week, the situation has changed little, the market now finding itself in contact with a technical level at 1034 billion dollars. Former resistance before having acted as support, will the market manage to re-enter this level upwards? If he succeeds, it will be a rather positive response in front of the sellers, which will allow the market capitalisation to return towards its major resistance at $1.147 billion.
For now, as long as this technical level is not regained, it will be rather complicated to have a bullish bias on the market over the next few months. Moreover, if a rejection takes place on the current technical level, it is certain that the market will be back at 920 billion dollars.
Altcoins are still under resistance
For altcoins, it is clear that on the H4 scale, they have been evolving under resistance for several days, awaiting a movement on the side of Bitcoin and Ethereum. For now, keep an eye on the technical level at $313 billion. A close above this level will allow altcoins to take the direction of $320 billion, the technical level to regain to re-enter the range and hope for a return to $340 billion.
However, if Bitcoin and Ethereum unscrew lower, it is a safe bet that altcoins will follow this momentum. For now, as long as the gray zone is maintained, the worst is avoided. Indeed, a passage below this level in H4 and 1D will cause the capitalization of altcoins to fall to 290 billion dollars which is the support for the year 2022 and 2023 for this asset class.
Regarding the dominance of the king of cryptocurrencies, this will not be discussed today since it is still on the resistance mentioned the last week at 49.71%. Thus, the substance of our remarks from the previous analysis has not been altered, which requires keeping our eyes riveted on the same technical thresholds.
Ethereum fails to maintain a position of strength
Faced with the king of cryptocurrencies, which has retained its strength against the rest of the market, it is clear that ether has not been able to maintain the upward trend in which it has been in recent weeks. From this level, the trendline having been broken, was reintegrated downwards, which led the market to return below its key pivot (grey zone) during the last few days.
Now on technical support at 0.065BTC, it will be necessary to witness a rebound so that ethereum can regain strength and regain the pivot. However, given the technical situation of the price, it is a safe bet that the downtrend could continue its way to find the lows of the year 2023 at 0.062BTC. The next few weeks will be very interesting to follow and will give a rather clear idea of the trend that will emerge between the two assets for the rest of the summer.
DeFI cryptocurrencies put to the test of resistance
For the decentralized finance sector, it is clear that the situation is rather complex. Despite a calculation problem in the capitalization of DeFI by TradingView, it is clear that the market is under resistance at $36.8 billion, which reinforces the probabilities of the bearish scenario that we mentioned last week.
In absolute terms, until the $39.75 billion is regained (upper level), the bias to have is clearly bearish with a target corresponding to the green line at $32.70 billion. This level represented in green acted as support last November before being a resistance for a few weeks. Thus, it is very likely that the price will react on this level if the market returns there.
Here we are at the end of this analysis of the cryptocurrency market. What you need to understand is that despite the rebound, the market is under resistance from a general point of view, which has caused BTC to maintain its leadership status while putting aside the technical interest of the ETHBTC pair. Indeed, Ethereum is not in a favorable position against the king of cryptocurrencies, quite the contrary! Thus, this largely plays on the dynamics experienced by DeFI cryptocurrencies and, more generally, altcoins.
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