Bitcoin causes altcoins to fall – Since the launch of spot Bitcoin ETFs, sellers have regained control of the price. Indeed, sellers managed to bring the price below $40,000. Currently, buyers are fighting to get back above the resistance level at $40,500. A rejection at this level would result in a continuation of the bearish dynamic initiated since the high marked at $49,000. At the same time, Ethereum has fallen below $2,400, and the price is down more than 12% in one week. ETH is not the only one to have suffered from BTC’s recent decline. Indeed, XRP (XRP) is down almost 10% in a week, and Avalanche (AVAX) is down almost 15% in a week. Are altcoins sending a bearish signal? Let us now analyze the situation of Ethereum and altcoins.
Altcoin capitalization slips below support at $750 billion
The course of Bitcoin fell, and he brought altcoins with him. Indeed, the capitalization of altcoins has fell more than 15% from the BTC top. Recently, the price has slipped below support at $750 billion :
This is a level that should be recover as media so that the course can continue your ascent. A resumption of support could result in a new high on the capitalization of altcoinsand perhaps even, to a return to the level of resistance at $950 billion. On the other hand, if the price does not react to the level of moving averages 9 and 18, it could return to the level of support at $690 billion. The buyers’ goal is to maintain this support for avoid scoring a local top.
The RSI displays a bearish dynamics with falling troughs and peaks since the end of 2023. We will have to find a bullish momentum so that the buyers can regain momentum.
Bitcoin dominance attempts to rebound
Bitcoin dominance is an indicator of strength of BTC compared to altcoins. Indeed, if capital flows towards the king of cryptocurrencies, dominance tends to increase and vice versa. Of the signs of shortness of breath are taking shape on the course of BTC dominance:
Already, the course has broken the bullish trendline implemented at the start of 2023. Then, the course was broke the last low marked at 51.7%. However, the best would be validated in the event of development below the last trough marked at 50.9%. This level holds for the moment, but a rejection is possible. In the event of rejection, the altcoins could benefit from capital turnover. The ideal for altcoins would be if BTC could stay within a range with relatively low volatility. On the other hand, if the price reaches resume resistance at 53% as support, a new high is possible. In this case, the next resistance is around the 58% of dominance.
The RSI is bearishand the momentum could continue in the event of a close below 42. As long as the dynamic is like this, the sellers take advantage of the momentum.
Ethereum is back on support at $2,100, can a rebound take place?
When we look at the dynamics of Ethereum, we see that the buyers have control over the price. In fact, the course is in bullish momentum according to Dow’s law. However, ETH followed BTC in its decline, and the support at $2,400 surrendered :
THE support at $2,100 could allow the course to know a rebound at resistance level at $2,400. It will be necessary to resume this level as support to be able to mark a new high on ETH. Thus, the price could return to the level of resistance at $2,800. If the sellers manage to make the bulls give in at the level of $2,100the next support is at $1,930.
The RSI displays a bearish dynamics. It will be necessary to change dynamics so that buyers can benefit from the momentum. Also, a break in the bearish trendline could bring bullish volatility.
The war is not yet won for buyers on the ETH/BTC pair
The pair ETH/BTC shows bearish momentum since the end of 2022. Despite everything, the price reacted upwards when returning to the level of support at 0.05 BTC. An interesting bullish reaction which shows that this level is defended by the bulls :
This increase ended at the level of resistance at 0.06 BTC and at the level of bearish trendline. This trendline is very powerful, it has been postponing the course for several months. It will be necessary to separate ourselves from this level of resistance to be able to find a bullish momentum on this pair. The RSI has been trending upwards for several weeks, buyers benefit from the momentum.
Dogecoin (DOGE) must return above $0.09
Buyers defended the level of support at $0.06. Thanks to this buying reaction, the price regained momentum with weekly rising lows and highs. However, the price has recently blocked at the level resistance at $0.105. Following this rejection, the course dropped by almost 30% :
Back at the level of institutional bias (EMA 9/EMA 18) bullishit will be necessary to resume the level at $0.09 as support. If this scenario comes true, the price could return to resistance at $0.105. On the other hand, a rejection could bring the price back to the level of support at $0.07. As long as the dynamic is like this, the buyers have control over the price. Also, the RSI continues to evolve above the bullish trendlinewith a bullish structure. THE buyers have their hands on momentum weekly.
BTC has shown relatively fragile momentum for several weeks and altcoins are following suit. Indeed, the capitalization of altcoins has lost support at $750 billion. This level will need to be recovered as support so that the price can continue its upward momentum. Bitcoin’s dominance is fragile, but it still does not confirm a top for the moment. To confirm a top, it will be necessary to develop below 50.9%. For its part, Ethereum lost $2,400. The price will have to react around the support at $2,100 to try to break the resistance level at $2,400 once again. For the moment, the dynamic is bullish on ETH, and a new high against the dollar cannot be ruled out for the weeks or months to come. Against Bitcoin, ETH stuck at the bearish trendline. The bulls have the possibility of changing dynamics, but we will have to get rid of this bearish trendline which has been pushing back the price for several months.
Dogecoin (DOGE) stuck at the resistance level at $0.105, but despite the decline, the price continues to show solid momentum. However, it will be necessary to resume the level at $0.09 as support to hope for a new high on Elon Musk’s favorite asset. Dogecoin could continue to rise if the king of cryptocurrencies stops falling. Since the launch of ETFs, BTC has been fragile.