Since our previous crypto update dated last weekend, the evolution experienced by the cryptocurrency market has not been very favorable to the rise, except for a few altcoins. With a new year fast approaching, the end-of-year holidays are imminent and should give way to a short period of calm during the next two weeks. Of course, this is only theoretical and is based on years spent on all the different financial markets in terms of daily volumes. Nevertheless, it remains interesting to determine the bias to have for the coming weeks and the levels to monitor, which we will do without further delay.
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Cryptocurrency market gets thrown back under resistance
Since last Sunday, there is no Nothing special to report on the total capitalization of the cryptocurrency market, apart from the technical rejection that occurred on the resistance zone that we previously identified. If the bullish breakout does not occur by the end of the year, what should we expect? As mentioned last week, this will increase the probability that a range can be built during the start of 2024 with a lateralization between this resistance zone and the 1,244 billion dollars.
Overall, the market stabilizing under resistance, price action has not moved, which does not allow us to identify technical levels which could have been constructed. However, in addition to the 1,244 billion dollars, also keep in mind the technical level at 1,400 billion of dollars. Although not represented on a weekly scale, he operated as resistance for almost three weeks, which demonstrates its importance. Thus, in the event of declines, it will be entirely possible to have a reaction at this level.
About the capitalization of altcoinsthis being in the same situation as the slast weekthere is no nothing special to mention in the current state of the market. As a result, we will have the opportunity to analyze the capitalization when it has clearly evolved, whether upwards or downwards.
Is Bitcoin Weakening?
Although he is still too early to decide on a summit for the dominance of the king of cryptocurrencies, it is clear that he has particularly weakened in recent days, trying as best he can to remain above a technical zone at 53%. If it crosses this zone downwards, it will gradually return to 51.45%which could lead to some of the liquidity flowing into ethereum and altcoinsprovided that it continues to stabilize against the dollar.
Overall, on a weekly scale, the dominance of the king of cryptocurrencies will have every chance of start on the rise as long as it remains above 51.45%. However, a passage below this level will open the way to a return of dominance below 49.7%, a historic threshold for the asset. Thus, the coming weeks will be particularly interesting and we will give signs of the dynamics that the entire market will experience at the start of 2024.
Concerning the ETH/BTC pairthis will not also be mentioned since the price is still fighting under the technical pivot within the range that we identified more than two weeks ago. Therefore, there will be nothing particular to discuss as long as the price of ETH/BTC is located in this narrow compression zone which very clearly demonstrates the underperformance of ethereum.
Decentralized finance continues to reach new heights
Having battled with the pivot zone last week, the decentralized finance sector is doing quite well since buyers managed to bring the price above the pivot zone at $64.6 billion. Currently on a doji figure on a weekly scale, this testifies to stakeholder uncertainty for several days.
With a beautiful fuse having led the course to operate a pullback on the 59.60 billion dollars, the capitalization is about to close above the weekly pivot. With such a scenario, this will allow the sector to seek 75 billion dollars within the next few weeks. Of course, it is now that buyers must come forward since a rejection in the current area must be seen as a first negative sign. More broadly, the bias to be maintained must be upward as long as the capitalization is greater than 55 billion dollars.
You have undoubtedly noticed that the market is under many resistances while the dominance of the king of cryptocurrencies tries to maintain itself on a support. However, good trends have taken place on the DeFI sector, allowing capitalization to progress upwards. Although the last few days may be a little calmer, let’s closely monitor the dynamics of bitcoin by comparing its situation against the dollar and against the rest of the market. It’s sort of our preferred indicator to determine the trends that are emerging within the market itself. If there is ever a time when Ethereum needs to come out on top, it is now. With a bitcoin in full range against the dollar and on a weak support for its dominancean upward recovery in ether will allow decentralized finance and, more generally, altcoins, to continue to take off.
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