The Bitcoin and cryptocurrency market is pushing up again and again. Will it stop and make a downtrend reversal? This is a question that is very difficult to answer with certainty. Therefore, in this new crypto point of the weekend, we will take a step back by identifying the major levels on different time frames. If possible, we will try to establish the bias to have although this is subjective and will largely depend on the evolution of prices during the next week.
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The market managed to preserve the bullish momentum
Since last week, the market has reacted upwards by bouncing off the green zone that we had identified for several weeks after taking liquidity just below. Having managed to overcome a major resistance at 1030 billion dollars, the market capitalization is now below a technical level which stands at 1082 billion dollars.
Stuck below this threshold for several days, will the market be able to overcome it over the next few days? If it succeeds, the price will take the direction of a technical level which is located at 1147 billion dollars. Having made a pullback on this level during last summer, if the market breaks this level upwards, the price will take the direction of 1210 billion dollars (red level).
However, we must not forget that the market is currently under resistance. As long as it does not manage to break the current level upwards, we must remain on our guard and have in mind a potential reversal downwards. Indeed, it is possible that the recovery from the $1030 billion is only an excess bullish before heading back towards the lower technical levels which are located at $920 and $875 billion.
Altcoins are also under resistance
For the altcoins, we can see that the capitalization is still moving in its range, currently being below the double technical level at 402 and 412 billion dollars. This is an important level that the market must be able to recover in order to operate a continuation of the bullish momentum. If the price manages to overcome it, it will take the direction of 440 billion dollars, a technical level which corresponds to the resistance of August 2022.
If the market does not manage to extricate itself from the current technical level and it is led to be rejected on the downside, it will probably return to the technical level which is at $350 billion. This is an important level that, as shown on the chart, was support from last June to October on altcoins.
In the event that the price of the capitalization were to fall below $350 billion, this would indicate a strong comeback from the sellers on the altcoins and a disadvantageous configuration for the buyers. For the moment, it should be remembered that the altcoins are located in their technical range on the upper part. Therefore, caution should be exercised on current levels. For now, it’s just worth watching the price.
Bitcoin is still under resistance
For the king of cryptocurrencies, we can see that the price of dominance has always been evolving in the same range since the beginning of 2021. Currently under the resistance that we have identified in previous analyzes, will the price come to s free from it on the rise? Failure to do so would lead to rejection twice within a short time span, which would show the strength of the sellers.
However, if bitcoin dominance starts to rise again over the next few days, the first target is at 45.47% and the second at 46.62%. However, this will be highly dependent on the bullish momentum and the price’s ability to preserve current resistance as support in the event of an upside breakout. For the moment, the price has failed to register a new high, which is rather negative.
In addition, if the bitcoin dominance does not manage to start rising again and a new downward low is registered, this could be bad news for the price which, in this context, will probably take the path of 42.10% dominance. . This technical level is important since it corresponds to an old resistance from last October and December.
The ETH/BTC pair continues its amorphous evolution
For the Ethereum cryptocurrency, the situation has not changed since last week against the king of cryptocurrencies. The price continues to gradually fall by moving below the technical level at 0.0703/0.0715BTC. In a relatively complicated situation, the price is still in the upper part of the range.
However, the price evolving below the technical level that we have just mentioned, the bias to have on Ethereum, against Bitcoin, is rather bearish with a first objective at 0.065BTC. Corresponding to a major pivot zone on the course, this is the level not to be lost for the next few months if we do not wish to witness a powerful drop in Ethereum as we had known it during the months of May and June. 2022.
For the moment, there is nothing interesting to note in the evolution of the course during these last seven days since Ethereum continues to fight with the current technical level to succeed in freeing itself from it again on the rise.
DEFI cryptocurrencies continue to push higher
Since last week, the decentralized finance cryptocurrency capitalization situation has been doing well after a double bounce off a pivot at $43.7/$44 billion. Having managed to overcome an important resistance at 48.75 billion, the price is now heading towards the next major resistance which is located at 59.7 billion dollars.
Continuing to evolve in this wide range between the resistance at $59.7 billion and a support at $34.8 billion, the price is in an area where it is necessary to be careful if you want to position yourself at the increase, something that had to be done a few weeks ago. For the momentum, the bias to have is bullish and as long as the price does not return below the pivot at 43.7 billion, the bias has no reason to be bearish. However, if such a scenario occurs, the first target is at $40 billion.
Here we are at the end of this technical analysis of the market. What needs to be seen is that we are currently trading on significant resistance in terms of total market capitalization. Despite a rise in decentralized finance capitalization, Ethereum is struggling against Bitcoin, especially as dominance sits on resistance. Currently, caution should be exercised as it is possible to witness a market rejection at current levels to start falling again.
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