The market is patient, but investors are getting impatient, it is clear that the cryptocurrency market is in a particularly calm situation with a low volatilityan excessively long range and altcoins which seem to be at a standstill or in a continuous decline.
However, this should not force you to disconnect from the charts since there are always interesting observations to be made regarding the coming weeks. Today, as the previous analyzes could be similar over the weeks with the low time units, we will take a step back and determine the areas from which the market must extricate oneself to resume volatility.
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Cryptocurrencies on a Major Weekly Pivot
For the total market capitalization, the price is in a wide range between 974 and 1,244 billion dollars (represented in orange). The summer of 2023 has been particularly calm with a lateralization of the market in the upper limit. Approaching the row pivot has 1,100 billion dollars, what direction will be taken for the start of the school year in September? Depending on the price reaction, the momentum we see over the next few months could be totally different.
Thus, in order for buyers to preserve their favorable position, a rebound on the pivot will be necessary in order to pick up the upper terminal of the range. For now, although we may favor a bullish biaswe are in a some uncertainty as to the wording that the capitalization will have. Indeed, a pivot break will lead the market to head towards the lower limit at 974 billion, the last bastion before a back to lows from the end of 2023.
Bitcoin and Ethereum still lead the way for altcoins
When comparing the total market capitalization and that of altcoins, we can see that the rebound that altcoins have experienced has been much weaker than that of capitalization including bitcoin and ethereum. As a result, it is clear that we are facing a year 2023 which is driven by bitcoin and ethereumleaving a large majority of altcoins on the side to the profits of a few narratives on different blockchains.
Following a rejection on a resistance, the price is also on the technical pivot of the range at 337 billion, the last rampart before a back to $291 billion. Thus, what we have discussed for the total market capitalization also applies to that of the altcoins which must rebound as soon as possible to preserve the current support. If they do not succeed, the capitalization will find its low points from last year
An unfavorable evolution of dominance for the rest of the cryptocurrencies
Regarding the dominance of the king of cryptocurrencies, it is progressing quietly with a rebound on a previous resistance (red line). This testifies to the dynamic in which the king of cryptocurrencies has established itself for several months, that of a suction of cash to the detriment of a difficulty for ethereum and altcoins, such as MATIC to name but one.
This largely explains the differentiation that takes place between the total market capitalization and that which is dedicated only to altcoins. As a result, as long as the price evolves in this dynamic, it will be difficult to obtain, in parallel, nice increases on ethereum and altcoins. Thus, to hope for a reversal of the downward trend in dominance, it will be necessary to monitor a reintegration of the range with a weekly closing.
Ethereum underperforms, altcoins line up
To end this analysis, we will not look at the capitalization of DeFi, as it has not changed much since last week, which will lead us to close our remarks on the situation of the ETH/BTC pair on a weekly scale. For several months, it has been clear that the trend is down with multiple rejections under a large number of resistances.
Currently under resistance, will ETH continue to falter against the king of cryptocurrencies by being rejected for the umpteenth time? If so, the asset should take the direction of the 0.060BTC, a technical level on which the price has managed to hold for several weeks. However, for a bullish rally in Ethereum to take place with a boost in altcoin capitalization, the technical confluence (horizontal and oblique resistance) will need to be crossed in the market.
Here we are at the end of this weekend crypto point. You have no doubt understood that the majority of the market keep lateralizingnow being on relatively important technical pivots since a bearish breakout could lead to a powerful market fall. Thus, the days to come will be interesting and may bring a little more volatility at the market. In any case, for a bullish recovery of altcoins to take place, this will have to result in a ETH/BTC pair gain strength.
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