In this new crypto point of the weekend, it is time to stop on the cryptocurrency market which has the wind in its sails, with a bitcoin $40,000, as well as an ethereum which is at doors of 2,200 dollars. In the same way as our previous crypto points, we will have the opportunity to review the developments that the market has experienced during these last days, the levels to monitor as well as the bias to have for this month of December. Without further ado, let’s go to TradingView!
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The cryptocurrency market validates our technical objective
While the market was in a period of lateralization that we had materialized in our previous analysis by identifying an H4 range, the exit of this figure took place on the rise with a break of 1,390 billion dollars. This allowed the course to take the direction of 1.618 Fibonacci at $1.45 trillion. Corresponding to the extension of the previous bearish movement, this level could act as a resistance during the next few days.
As you have surely understood, for the market to be able to preserve its upward momentum in order to reach $1,640 billion, the $1,450 billion will have to be broken on the rise with a daily closing which is higher. The price reaction at the end of the weekend will be quite significant and we will guide the dynamics that the market could register during the next few days. A rejection at this level could lead to cryptocurrency market to take a bearish direction.
In the current state of price action, the bias to be had will be bullish as long as the market remains above $1.39 trillion. As for altcoins, is the situation the same as for total market capitalization? This is what we will see without further delay.
Will altcoins make us dream?
Concerning altcoins, our comments are generally the same as last week since the capitalization managed to extricate itself from the weekly range by closing above the 405 billion dollars. The current issue is rather simple: a maintaining the course above the upper limit of the range. If bitcoin and ethereum do not spoil the party and that the total capitalization continues its bullish progressionaltcoins will have very good weeks in the green.
The major objective being located at 500 billion dollars, the bullish outlook is rather interesting. However, although we have a bullish bias for altcoins, it is appropriate to take a step back on the situation while preparing, at the same time, for the bearish scenario. A downward reintegration of $405 billion will be the first sign of a trend reversal for altcoins, paving the way for a return to $337 billion. Although we are not in this configuration and the signs are rather positive, this scenario should be kept in mind.
Bitcoin’s dominance is regaining momentum
While dominance marked a break time by evolving under a daily resistance that we had identified in our previous crypto points, it is clear that it is always show strength by freeing oneself, once again, from the technical zone to 52.8/53.2%. For now, we don’t have much to report other than that the king of cryptocurrencies continues tosuck a lot of capital out of the market.
The technical level at 51.45% should be monitored since maintaining the price above will allow bitcoin to preserve its outperformance compared to the rest of the market. For now, we can say that things are progressing and that it is necessary to show patience waiting for a trend reversal. Thus, we will have the opportunity to return to the dominance of bitcoin in the coming weeks when movements drawing our attention in favor of Ethereum and altcoins take place.
Regarding the pair ETH/BTCthis will not be mentioned today since the course continues its battle with the technical pivot that we had identified at the H4 scale. As long as we do not have a range exit then, there will be no Nothing special to report on the course. Thus, it is appropriate to conclude our remarks with a short analysis of the capitalization of DeFI cryptocurrencies.
DeFI cryptocurrencies between two major levels
It is clear that the sector has evolved in favor of buyerscapitalization having managed to overcome major resistance to 55 billion dollars. Currently regaining 59.60 billion (a second weekly resistance), a weekly close above this technical level will allow the sector to extend its upward momentum. For the moment, capitalization is heading at full speed towards a major pivot zone at $64.6 billion.
Will capitalization manage to overcome this? It is appropriate, in the current state of the course, to exercise caution as the price approaches the pivot. Having previously operated as weekly supportthere has never been technical pullback. To obtain a breakout of this zone, this will require a significant buying force which will materialize, in parallel, by an ether greater than $2,200. For now we can have a bullish bias on this sector as long as the capitalization remains above $59.60 billion.
The next few weeks will be particularly interesting for the entire cryptocurrency market. While the dominance of cryptocurrencies passes over a technical areathis did not prevent ethereum and many altcoins from go upward. However, you saw it with the capitalization of altcoins, the best is yet to come if bitcoin does not spoil the party by reversing its downward trend. For the start to be given, only one condition remains to be fulfilled: a trend reversal on the ETH/BTC pair so that Ethereum can place itself in a situation of outperformance against the king of cryptocurrencies.
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