Over the past few days, the market has seen some pretty powerful volatility that mostly materialized on the upside. Despite the shanghai update anticipated as a sell the news like The Merge, it did not materialize on the ethereum course since he took off strongly in order to seek the 2 120 dollars. Is this the start of a new altseason for cryptocurrencies? This is what we will try to answer during this weekend crypto point.
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The capitalization of cryptocurrencies has just overcome a major threshold
Last week in the previous crypto point of the weekendwe insisted on the uncertain situation of the capitalization of cryptocurrencies since the price had been evolving for several weeks under an important resistance at $1.14 trillion. It is clear that a powerful upward movement has taken place, which has allowed the market to overcome this resistance for the first time since June 2022.
This confirms the continuity of bullish momentum which took place at the beginning of March during the sebranches of the traditional banking sector. Currently approaching $1.28 trillion, will cryptocurrencies get there without backtracking? As it stands, it is possible to see a weak pullback (green zone) during the next few days in the event that the cryptocurrencies are brought to extend the bullish momentum towards the technical zone at 1,280/1 300 billion dollars which will probably act as a resistance.
Breaking this level could give rise to a new objective of 1.5 trillion dollars. However, nothing is decided yet. After such a powerful advance, isn’t it time for a correction in the crypto market? What you need to keep in mind is that a loss of the freshly won resistance will be an invalidation for buyers and will undoubtedly be the first sign of a potential trend reversal on cryptocurrencies.
Are altcoins about to shine?
For the altcoins, we had mentioned last week the rather amorphous evolution of the capitalization, which denoted the expectation of a movement on ethereum as a start of a bullish movement. Some altcoins have recorded rather interesting increases, but for all that, the capitalization is at the same point as in September and November 2022 as well as last February: under a powerful resistance to 400 billion.
If a altseason is to take place, the most interesting moves probably haven’t happened yet. To achieve this, altcoins will have to overcome this resistance with a clear close and avoid re-entry. In this context, in addition to a return to 440 billion dollars (resistance in the summer of 2022), it will also be necessary to monitor the technical level 420 billion.
It is certain that the technical situation can make you dream but for all that, until proven otherwise, this level remains a resistance, although it may weaken. In this context, for an altseason to materialize, it will be necessary to attend the continued bullish momentum on ethereum. On the other hand, bitcoin will have to stop gaining dominance. Indeed, as long as he gains strength, this idea will be out of the way. In the event that the capitalization is rejected on the current resistance, the bearish path will lead to a return of the price to 360 billion dollars.
Caution must be taken on the strength of the king of cryptocurrencies
During the summer of 2021 and 2022, bitcoin dominance was pushing north during May and June. This time, the once again powerful dominance surge happens a little earlier. The resistance that we have been talking about for many weeks at 48.25% has been reached by the dominance of the king of cryptocurrencies.
However, a strong reintegration has just taken place, is this the sign of a change of direction for the capitals within the cryptocurrency market. If we are to believe the cyclicality and the evolution of the course in recent years, you can find on the graph a scenario (non-contractual of course) on the path that the dominance of the king of cryptocurrencies could take in order to give way to ethereum and market altcoins.
The first sign of an upcoming drop in dominance will be a drop below 46.85% then, in a second step, a reintegration of an old resistance at 44.40%. A powerful decline followed by a sideways dominance before falling back down would be a rather interesting scenario that would lead to nice upsides on altcoins. However, we are never sure what may happen in the markets. The goal is not to have a crystal ball but to understand how and why altcoins could preserve bullish momentum.
Ethereum regains strength, a good point for other cryptocurrencies
Pour ethereum, the situation is very interesting. As we mentioned last week, the course operated a upward reintegration of its pivot, which testifies to a certain interest of the market for this asset after a highlight of bitcoin for several weeks.
Currently, all eyes are on Ethereum’s ability to maintain its bullish momentum in order to break out of the technical level corresponding to 0.071BTC. If it succeeds, it will probably take the direction of the resistance at 0.072BTC and then 0.076BTC.
This scenario should not be ruled out since it is one of the conditions for altcoins to continue their rise. A failure on the gray zone with a passage below the pivot will be an invalidation for the buyers, which will result in a takeover (yes, again) of the king of cryptocurrencies. At the same time, what will have to be monitored is the preservation of the environment risk-on (or not) with the evolution of the DXY. It will be of great influence in the evolution that we will know on the markets during the next weeks.
And the capitalization of DeFi, is it growing?
Pour the decentralized finance sector, the words of last week are still relevant. How these assets evolve will largely depend on the path Ethereum decides to take, whether it can sideline the king of cryptocurrencies for a few weeks. If he succeeds, it will be rather positive for the rest of the events.
Currently, the price has regained a first resistance $49.80 billion, but is now below another technical level at $52.90 billion. As part of a new Ethereum surge, now would be a rather good time for another bullish leg on this capitalization with a return to $59.70 billion. However, a re-entry below $49.80 billion with a further rise in bitcoin dominance will cause the capitalization of DeFi cryptocurrencies to take the bearish path with a return to the pivot depicted in blue.
Altseason ou Sell in may and go away ? Here is the great debate that is currently swirling around the evolution of the price of cryptocurrencies for the coming weeks. The market is currently punctuated by this hope of witnessing a powerful altseason. However, although the inflation figures may decline, the recession is currently looming, which caused the US dollar to gain strength this weekend. So, is this the end of the party for cryptocurrencies? In any case, it will be necessary to show composure and take profits regularly so as not to be surprised by the market which, currently, has eyes on ethereum.
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