Can altcoins keep bouncing back? – Recent requests for Bitcoin ETFs by Blackrock, Fidelity, Ark Invest and Invesco have benefited the cryptocurrency market. In fact, the price of Bitcoin has marked a new high in 2023 by exceeding $31,000. For its part, the price of Ethereum remains below $2,000 at the moment. Altcoins are taking advantage of institutional interest to rebound, but the rebound remains timid for the vast majority of cryptocurrencies. On the other hand, Bitcoin Cash (BCH), shows an increase of more than 100% in one week. Is the cryptocurrency rebound already over? Let’s look at the clues left by the graphs!
Altcoin Cap Stalls at Institutional Bearish Bias
As explained in the introduction to this article, the price of Bitcoin recently marked a new high in 2023. For its part, the capitalization of altcoins has bouncesbut is always at 20% from a new high. This shows that capital flows very largely towards BTC. Additionally, the price of altcoins capitalization is stalling at the level of the institutional bias (EMA 9/EMA 18) bearish:
The course has recently bounced back at the level of bearish trendlinebut it blocks for the moment at the level of moving averages 9 and 18. If the buyers push, the price could reach the $670 billion resistance zone. Whatever happens, the course is stuck in a tidy between the upper limit at $670 billionand the lower bound located around $480 billion. A break in the upper band could lead to bullish volatility on altcoins capitalization. The next resistance powerful is around $950 billion.
The RSI continues to evolve under the bearish trendline. At the moment, the rebound is not enough to retake the trendline, nor to mark bottoms and ascending tops. The momentum remains fragile.
Bitcoin dominance could return to 53%
We have seen it, the altcoins underperform the king of cryptocurrencies. Capital is flowing massively into Bitcoin, and the BTC dominance has been steadily increasing since September 2022. For the moment, all returns to the level of the bullish institutional bias are followed by a bounce :
The course is getting closer to the next resistance zone located around 53% dominance. A rejection could occur at this level. In case of rejection, the price could return to the level of the monthly support at 47% dominance. On the other hand, if BTC continues to attract capital, then dominance could increase to the resistance at 58% dominance. As long as the dominance moves upwards, altcoins will struggle to express themselves. You will have to wait a best local for the capitals go to the altcoins.
The RSI is moving above the bullish trendline, a rebound could occur at the trendline in the coming days. When the trendline is broken, the trend could pause, or reverse.
Despite the recent drop, Ethereum price keeps trending
For its part, Ethereum is still evolving below the last high marked at $2,140. The prince of cryptocurrencies underperforms BTC, but he still retains the uptrend initiated at the beginning of the year:
The price has recently rebounded at the level of the bracket at $1,750and at the level of bullish trendline. Now, the resistance at $2,000 give in. If so, then the price could join the next resistance zone located at $2,400. Recall that the course marked a double bottom in weekly time unit, a bullish figure for financial assets. It will be necessary to continue to mark troughs and ascending peaks to find colors on ETH. On the other hand, a break in the bullish trendline would show some shortness of breath.
The RSI is showing fragility evolving under the bullish trendlineit would be necessary to find a dynamic with troughs and ascending peaks.
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Ethereum still struggling against Bitcoin
As a reminder, the ETH/BTC pair is in a stored for about two years. For now, buyers and sellers are neutralizing each other. Recently, the sellers have been in control and have brought the price close to the bottom of the range located at 0.06 BTC :
With the close below the last low marked at 0.062 BTCprice has continued to make downward lows and highs since September 2022. As long as price moves below the bearish trendlineit will remain fragile. However, a rebound is possible at the bottom of the range. It is essential that buyers defend this level to avoid breaking this range from below. Also, it will be necessary to resume the intermediate support of the range located around 0.066 BTC.
For its part, the RSI always evolves under the bearish trendline, but it does not mark a new low. Thus, if the price resumes here, a bullish divergence could be set up. This shows some shortness of breath on the side of the sellers. Whatever happens, we will have to take a bullish momentum with bottoms and bottoms rising on this indicator.
Bitcoin Cash (BCH) continues to rise and posts 115% in one week
Last week, BCH was already the altcoin of the moment with a 35% increase in one week. In seven days, the BCH shows a 115% increase. In the space of a week, this altcoin has gained 10 places on the Coinmarketcap ranking. With its meteoric rise in the space of just two weeks, it is now the 14th capitalization of cryptocurrencies. The course breaks down the different resistance zones present in its path:
Since the rebound found around the bracket at $98the price is up more than 200%. The course is currently evolving at the level of a resistance at $330if it yields, the price could join the next resistance at $400. However, the price could pause here, and return to the level of the bracket at $280.
The RSI exploded higher following the breakout of the bearish trendline. A trendline break generally leads to bullish volatility, this was the case here. However, the RSI is in overbought zonehe might need to pause.
At the moment, the capitalization of altcoins is stuck at the level of the bearish institutional bias. In the event of a bullish continuation, the price will have to face the resistance at $670 billion. Bitcoin continues to attract capital, BTC dominance increases and approaches resistance at 53%. For its part, Ethereum is maintaining the trend initiated at the start of the year, the price could once again try to break the resistance at $2,000 in the days to come. Against Bitcoin, Ethereum remains fragile, but a bullish divergence could take place. Therefore, a rebound could occur at the bottom of the range.
Bitcoin Cash (BCH) is once again in the spotlight this week with an increase of more than 115% in one week. The price is currently moving close to the resistance at $330, and the RSI is in the overbought zone. A pause could set in after more than 200% upside in the space of a few weeks. Can the BCH continue at this pace?
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