In this new crypto point of the weekend, we will have the opportunity to come back to our about last week, the scenarios we discussed and what to infer for the coming weeks in the cryptocurrency market. For the moment, it is clear that the dynamic is content with a range on a large part of the market’s assets. However, some altcoins do not wait for bitcoin and ethereum to operate a bullish recovery like XLM, LINK and MKR to name a few. Without further ado, let’s head straight to TradingView.
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The cryptocurrency market on technical support to preserve
Since last week, after the technical breakout of the threshold at $1.16 trillion, we mentioned the need for the market to stay above this technical threshold. This is now validated since the resistance has been flipping as support for several days (green zone). However, thehe market did not rebound with vigorwhich testifies to the fragility of buyers. So how will the market react?
For the moment, there is nothing special to mention since in terms of price, we are on the levels similar to those of last week, the market continues to evolve in a technical range zone, which can undermine the psychology of the participants if they change their bias regularly. For now, as long as we continue to move in H4 between $1.128 billion and $1.183 billion, there will be nothing special to report.
Altcoins move in line with total market capitalization
For the altcoinsthe situation is somewhat similar to that of total market capitalization since a resistance to $350 billion was recently gained and then flipped as support, allowing altcoins to have a technical threshold they can rest on before resuming volatility.
You can see it on the graph, the challenge now lies in the ability of the market to stay at the current level in order to bounce towards the technical area (shown in red) at $372 billion. If the market does not maintain the current zone, it will head towards 337 billion dollars before potentially unscrewing towards 290 billion dollars. For the moment, we are in the technical range. A break of the resistance would be particularly interesting since it would allow many altcoins to register nice increases during the coming weeks.
The dominance of the king of cryptocurrencies in favor of a technical rebound?
For the moment, since last week, there is not much in particular to report on the dominance of the king of cryptocurrenciesif not only the technical rebound on the 50% dominance threshold, which demonstrates that the strength of bitcoin against the rest of the market is still relevant.
From now on, it will be necessary to monitor the magnitude of the rebound. If it is unable to reach the technical threshold at 50.95%, then the first sign of a potential trend reversal could take place, which could take dominance below the technical threshold to 50% dominance. If this occurs with a hold of bitcoin in rangethis could be good news for ethereum and altcoins which could suck some of the liquidity out of the market.
Ethereum in trouble against bitcoin, will it get out of it?
For the ETH/BTC pair, there is nothing to report since last week, except only the rejection (despite an ascending top) on the technical level at $0.063. Currently, the price is moving between this technical level and the support at $0.060. As long as we don’t get out of it, there will be nothing special to report. The whole point is in the bullish resolution on the ETH/BTC pair so that altcoins can benefit in part from the liquidity of bitcoin.
However, nothing assures us that the resolution will be bullish, which leads us to consider different scenarios. It is possible that the king of cryptocurrencies preserve a strong dominance at least until the end of summer, which could cause Ethereum to drop below the 0.060BTC mark. In this context, altcoins could evolve in the same dynamic, without registering any particular increases. Finally, regarding the DeFI capitalization, the situation is exactly the same as last week. Thus, there is little point in repeating the remarks previously mentioned.
Here we are at the end of this technical analysis of the cryptocurrency market. Over the next few days, it will be necessary to carefully monitor the price’s reaction to the key levels we have identified. Depending on what happens, we will either continue to move in the range or we will have a resolution that will lead to one of the scenarios we have discussed. Currently, it seems important to closely monitor the dominance of the king of cryptocurrencies and the reaction of ethereum in the event of a change in direction. The balance of power between ETH and BTC is therefore crucial for the momentum that altcoins will take in the coming weeks.
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