In this new crypto point of the weekend, we will report on the situation of the cryptocurrency market following the evolution that prices have experienced in recent days. You have probably noticed that the week was rather red, which suggests that the bullish rally we have been witnessing since the beginning of the year is ending. Is this really the case? This is what we will try to answer in this new analysis.
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The capitalization of cryptocurrencies is in an unfavorable situation
Since our previous analysis, the situation has evolved negatively since the capitalization has reintegrated an important resistance at 1140 billion dollars on the downside. Is it a seller’s trap before rising again? If this is not the case and the market is indeed unable to find a bullish momentum by regaining the 1200 billion dollars, then it will be necessary to seriously consider a new bearish leg for the weeks to come.
Thus, all the current issue is about the ability, for the capitalization of cryptocurrencies, to go back above 1140 billion dollars. Acceptance of the price below such a level will be an invalidation for buyers which will initially result in a return to 1000 billion dollars. Not shown on the chart, this is a key level that should not be lost. A passage below this level will indeed confirm the selling force and could lead the market to return to its low points at the end of 2022.
Can altcoins rebound in the next few days?
The song is the same for altcoins. However, what should be noted is that they have been unable, from a capitalization point of view, to free themselves from the upper limit under which they have been evolving since July 2022. This is interesting since it testifies, for the moment, to a reluctance for buyers to expose themselves to very risky assets in a market that is already very volatile.
Unfortunately, the altcoins having failed once again on this resistance, they resumed the bearish path to achieve the objective that we mentioned last week in the event of an impossible recovery of the resistance. Most of the rally for altcoins during March was erased in a matter of days.
Since the altcoins are on the pivot of the range, it is now that they must rebound to try a new bullish breakthrough of the upper limit of the range. A passage under the pivot of the range will have to dismiss the hopes of an altseason. For the moment, nothing is decided yet, but if that happens, then the altcoins will quickly return to the lower limit at $340 billion.
Nothing to report on the dominance of Bitcoin
For the king of cryptocurrencies, the situation has not changed at all since our previous analysis. Thus, the bearish scenario that we have mentioned is still relevant with a temporization of dominance during the end of April. Of course, there is no point in stating a scenario with certainty. Adapting to the evolution and volatility of prices is the best thing.
Thus, it is quite possible to change bias on the dominance of Bitcoin in the event of a weekly close above 49%. However, as mentioned many times, it is resistance until proven otherwise, which leads us to favor a bearish bias for Bitcoin’s dominance over the next few weeks.
Ethereum gets rejected on a technical level, what will be next?
For Ethereum, the situation is still the same as last week, as is the dominance of the king of cryptocurrencies. Despite a rejection on the technical level that we had identified, the objective is still a break up so that the asset can continue to gain strength against Bitcoin. If he does not succeed, he will have to keep his eyes riveted on the pivot zone represented in blue.
For the moment, during the last few days, the balance of power between Ethereum and Bitcoin has practically stood still. For the moment, it is difficult to determine the asset that will manage to punctuate the market over the next few weeks. However, what is worth noting is that the resistance rejection on ETH/BTC happened at the same time as the bearish rejection for altcoins, which definitely demonstrates the influence of Ethereum. in a large part of the market.
DeFI cryptocurrencies follow Bitcoin and Ethereum
It is not without surprise, the cryptocurrencies of decentralized finance were not going to take off without Ethereum and Bitcoin, especially since the balance of power did not evolve between the latter, which in no way benefited the market when we analyze the market capitalization. The resistance on which the price evolved defeated the capitalization which fairly quickly resumed a downward dynamic.
Currently on the technical level at 47.5 billion dollars, the challenge is to bounce imperatively on this level to avoid a continuity of the bearish moment. In the event that the rebound does not occur, that Ethereum continues to lose strength against Bitcoin and that the dominance of the latter continues to rise, this can only be negative for the capitalization of DeFI which will probably return to the pivotal level at $44 billion.
Here we are at the end of this analysis of the cryptocurrency market. You have undoubtedly noticed it throughout the analysis, the majority of the charts show many rejections on resistances in parallel with a dominance of Bitcoin which is maintained relatively well. This graph, as well as that of ETH/BTC, will be monitored very closely if a change in trend is likely to occur over the next few days. For those who are in a long position, all that remains is to watch a rebound on the current levels to hope for a continuation of the bullish momentum on the whole market. Otherwise, the situation will be complex and will probably lead to a downtrend.
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