In this new crypto point of the weekend, we’ll take a look at the development the market has seen in recent days. Ethereum had the chance to make an upward push above $1,900, but even so, the crypto king continues to swing weakly. In light of such a development, there is certainly a major move on the way for cryptocurrencies, but will it necessarily be bullish? Without further ado, let’s head over to TradingView to try to see more clearly.
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Cryptocurrency capitalization is still in an undetermined position
The cryptocurrency’s capitalization price has not changed at all over the past two weeks. Until the opposite is proven, the price is still below resistance, which makes it somewhat bearish with bottom targets located first at $1,000 billion, and then, in the second step, at $920 billion.
At the moment, the capitalization continues its long development under the resistance by surpassing the EMA13 level for the time being. A loss of $1.1 trillion, with a new decline lower than the previous one, will undoubtedly lead to a continuation of the decline. However, nothing has been decided yet.
In order for the buyers to hope for the continuation of the momentum that started in the beginning of March, the resistance to the upside must be broken as soon as possible to take the direction of $1.28 trillion. At the moment, the bias in capitalization is somewhat bearish, especially since buyers have not been able to overcome this major resistance for several days.
Are digital currencies designed 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 the lateral allocation of the king of cryptocurrencies and the rather timid rise of Ethereum which, for the time being, has not managed to break free from $2000.
Moreover, while some altcoins are rushing higher, the situation is the opposite for others that have fallen despite the development of Bitcoin and Ether. At the moment, the price is moving in a range. At the key level currently, capitalization should rebound over the next few days hopefully back around 400 billion.
As long as the MA100 is not broken, the lower bound is not the preferred target for altcoins at the upper end of the range. However, we should not count on its support as they will have to successfully free themselves from the scope in hopes of returning to $450 billion. For the time being, as long as the scale is not split or crashed and bitcoin and ether do not make a new move, we can choose a side altcoin.
Bitcoin is very powerful compared to other cryptocurrencies
As for the dominance of the king of cryptocurrencies, the situation remains the same since our previous analysis and the targets set remain unchanged with the resistance at 48.25%. As long as Bitcoin does not perform a bearish trend reversal, it would be difficult to envision a bullish period for the altcoin. Indeed, the decline of Bitcoin’s dominance will herald a rotation of liquidity in risky assets within an already high-risk market.
Therefore, besides 46.85%, the lower levels to watch in the event of a dominance correction are 45.47% and 44.40%. A correction at these levels will probably benefit Ethereum, but in the event of a breakout of 44.40% consonant with the EMA200 just above, it would be an interesting signal in order to pick up some altcoins.
However, nothing plays. Bitcoin is still going strong, and its dominance has picked up again. If this situation continues and the resistance is broken to the upside, it would 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 reaction of the price if it reaches 48.25%.
Ethereum should be watched over the next few weeks
For the ETH/BTC pair, the situation is rather interesting. In fact, after crossing the pivot that we discussed in our previous analysis, the price managed to trigger a quick reconsolidation process, which is rather positive. The coming weeks will be one to watch closely for the ETH/BTC pair. How will price react? Reject EMA200 or break this dynamic resistance to get MA100?
The situation is somewhat uncertain at the moment as a return under the pivot would be a negation for buyers and would cause the asset to continue to underperform against the crypto king with the price back at 0.0598 BTC. However, if Ethereum can overcome the EMA200, it will undoubtedly follow the direction of the MA100. In this context, this will give altcoins the possibility to maintain current levels and, for some, to record retracements of a few percent.
Decentralized Finance Cryptocurrency Under Resistance
As for the DeFi market capitalization, which represents the capitalization of cryptocurrencies from decentralized finance, the situation is relatively similar to the previous weeks. This is mainly due to the strong dominance of the king of cryptocurrencies and the underperformance of ether.
Hopes for a significant increase in DeFi capitalization, similar to the summer of 2022, will depend in part on Ethereum being able to overcome the current resistance to putting the king of cryptocurrencies on the side. Currently, we’re not in that position at all, there’s a long way to go to get there.
What we are seeing is the market cap moving below the $49.80/$50B resistance. This level should be broken upwards as soon as possible for buyers considering further capitalization. Failure at this level, with the price falling below $47.30 billion, will open the way for $44 billion.
Here we are at the end of the crypto point this weekend. You can see that, both in terms of total market capitalization and altcoins, the situation has not changed in the past two weeks. With Bitcoin dominating in a strong position and Ethereum still on the sidelines, it is hard to see bullish momentum for the altcoin. However, Ethereum has reconsolidated its pivot, so 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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