Bitcoin (BTC) at the gates of $30,000, will altcoins follow the king of cryptocurrencies?

Since last week, the situation has particularly evolved with a powerful rise in the price of cryptocurrencies. Bitcoin approaching $30,000, Ethereum at the gates of $2,000, but still, many altcoins failed to post powerful gains following last week’s decline. This testifies to a aspiration of capital by the two most important cryptocurrencies on the market. Will this situation continue? This is what we will try to answer.

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Cryptocurrencies are under resistance

Price of the total market capitalization of cryptocurrencies on the 3D unit of time (Bitcoin, Ethereum and altcoins).

There last weekwe had mentioned the fact that the cryptocurrency market was at a very interesting technical level and that it absolutely had to rebound in order not to find its low points at the end of 2022. The macroeconomic context with the Silicon Valley Bank bankruptcy probably had an impact on the cryptocurrency market given the powerful rise in prices.

Currently, the total market capitalization is on a major level which, after operating as support in 2021, now acts as resistance. Will the course be able to break free? If this happens, the rise could be powerful since we would have the exit of a range in which the price has been evolving for almost a year. However, until proven otherwise, the current level is a resistance, especially since it is located just above the EMA200 on the 3D time unit.

If the price fails to overcome it, the invalidation will be clear to buyers and will probably cause the price to return, initially, to its pivot level at $920 billion. If the price manages to overcome its EMA200, the first objective is the technical level at $1.3 trillion.

Cryptocurrency market capitalization price on a daily scale on the 3D time unit (excluding Bitcoin and Ethereum)
Cryptocurrency market capitalization price on a daily scale on the 3D time unit (excluding Bitcoin and Ethereum)

About the altcoinsthe situation is particularly different since the increase in market capitalization has been largely driven by bitcoin and ethereum rebound. The latter are still under resistance despite the recovery of the MA100. In fact, they have not yet freed themselves from the resistance which lies 400 billion dollars.

If the altcoins manage to overcome it, the price will probably return to the upper resistance which is located at 440 billion dollars on which the price was rejected during the summer of 2022. As a result, you can see that the capital, at the currently, have not really focused on altcoins which have benefited slightly from the rise of bitcoin and ethereum.

Therefore, since the buying power is not very important, there is no doubt that a downward reversal of bitcoin and ethereum will be rather a bad sign for altcoins. Indeed, this could pave the way for the price to return to the low point of early March at just over $320 billion.

Bitcoin is still the king in the market

Course of the dominance of Bitcoin against other cryptocurrencies on the 3D unit of time
Course of Bitcoin dominance against other cryptocurrencies over the unit of time 3D

Regarding the price of bitcoin dominance, last week’s analysis was taken on the wrong foot since the price, despite the downward trend which had just been confirmed, rebounded strongly, remaining above its support at 43.10 /43.20%. Breaking free from the resistance in confluence with the EMA200 that we have been talking about for several weeks, the dominance has exploded upwards since it is now located under a resistance at 46.85%.

It is clear that the margin is still possible for a push of dominance on the upper limit of the range at 48.25% in the event that bitcoin pushes up towards 30,000 dollars. However, with the asset at the upper end of its range, it is possible that the uptrend will slow down over the next few weeks, which would give an opening for a strong takeover of ethereum and altcoins to trigger a bullish momentum.

Ethereum is at a key moment

Price of Ethereum against Bitcoin on the 3D time unit
Ethereum price against Bitcoin over the time unit 3D

Regarding ethereum, the situation is very interesting. With the rise of the king of cryptocurrencies, which sucked up a majority of capital, the price of ethereum lost strength, falling back below its MA100 in order to head towards the pivot of the wide range in which the price has been evolving since April 2021. This pivot being in confluence with the EMA200, in view of the many reactions that the price has operated on this level, there is no doubt about the importance of this zone.

It’s now or never for ethereum to bounce back. Indeed, if ethereum does not manage to react on this pivot zone, the price will operate the same dynamic as in May 2022 by falling sharply to the lower technical levels. It will therefore be necessary to monitor the closing of this weekend since a maintenance of the price above this level will be rather positive for ethereum. Indeed, this will allow it to bounce in the direction of the MA100 which is located just below a resistance which must be broken on the rise to register a real bullish momentum.

DeFi cryptocurrencies are in an interesting situation

Decentralized finance cryptocurrency capitalization price on 3D time unit
Decentralized finance cryptocurrency capitalization price on the 3D unit of time

To end this analysis, as always, we will focus on the capitalization of decentralized finance which is doing pretty well right now. Last week, we discussed the need for the price to stay above the MA100 which is at the confluence with the pivot zone. This is done for the capitalization which, after a significant wick on the $37 billionmanaged to save the fence on the 3D time unit.

Currently, the price is in the process of breaking out of a resistance at $48.75 billion which we have already mentioned many times. If the price manages to reach acceptance above this level, the next few days will be very interesting and could see a continuation of the bullish momentum. In this context, the $60 billion capitalization could be achieved. However, much of this will depend on whether Ethereum is able to bounce off the pivot we discussed earlier.

Here we are at the end of this weekend crypto point. As you have seen, it is the bitcoin which has dominated the market for more than a week and it is quite possible that this trend could continue for some time. However, given the situation of bitcoin’s dominance in the upper part of the range and the ethereum situation on its pivotwe could face between now and the end of March a liquidity rotation in favor of altcoins provided that bitcoin is not driven back down. This week will be important and punctuated by the decision that the FED will take on interest rates.

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