Cryptos in the green, but for how long? – Bitcoin (BTC) and altcoins are off to an interesting start to the year. However, we cannot say that the market is once again in a bull market. Indeed, the Bitcoin get stuck under $24,000far from what we experienced during the year 2021. For its part, theEther (Ethereum) evolves under $1,900. Also, Bitcoin attracts capital. Is this a bad sign for altcoins? Let’s analyze the situation on altcoins!
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Ethereum soon at 1,900 dollars?
On a weekly basis, Ethereum (ETH) is in a tidied up Between 1,900 and $1,000. To get out of it, it will be necessary to break the resistance.
The course of Ether is short term bullish since the close above $1,350. Therefore, will the price of Ether go up? It’s not as simple as that. However, we can see the different possible scenarios in order to be ready.
If Ethereum price reaches the weekly resistance at $1,900, it may be worth thinking about taking profits. Indeed, at the level of resistance at $1,900is also the bearish trendline who has already postponed the course. Also, the RSI could enter the zone of overbought, an area that can slow down the course. In case of rejection at this level, the price could then regain the “W” neck line at 1 $350. The price would then be on support. It may well rebound and resume the trend.
In the event of a weekly close above $2,030, the price could well break out of the range. If this scenario is realized, the price will then be on the other side of the bearish trendline and will have a bullish momentum on a weekly basis. The course of Ether could thus regain color. The RSI is bullish. We must maintain the bullish trendline and continue to show bottoms and rising tops. After more than a year of seeing the RSI drop, it looks like the indicator is changing momentum.
Ethereum bullish in the short term
After rising more than 50% since early November, Ether remains bullish in the short term. Warning ! Sellers have the opportunity to regain control.
Ethereum price is bullish in 4h time unit. The troughs and peaks are ascending. Recently, the ROI posted a bearish divergenceand the Classes is tidied up. In this unit of time, here are the two important levels for the future:
- the level at $1,642 : in the event of a close above in 4 hours, the price could continue to rise. The price could then reach the resistance at 1,900 dollars;
- the level at $1,512 : this is the lowest formed during the last fall. In the event of a close below this level, the momentum would change in this time frame and the sellers would regain control.
In the short term, buyers have the opportunity to continue on the momentum, but we will have to be attentive to these two levels.
Ether loses ground against Bitcoin
Ethereum struggles against Bitcoin. The leader in altcoins can’t get out of tidied up installed for over a year.
The last weekwe mentioned two possible scenarios. It’s the bearish scenario which is taking shape. Therefore, a return to the level of support at 0.066 BTC seems to fall into place. Buyers will need to defend this support to avoid a drop towards the next support at 0.06 BTC. Indeed, a close below the last low at 0.0655 BTC would generate bearish momentum.
The momentum is bearish. The RSI will have to change momentum to attempt a new breakout of the range. It’s been a few weeks since we noticed that Bitcoin attracts capital. Will the trend continue? Let’s look at the dominance of Bitcoin.
Bitcoin dominance continues to climb
Traders are favoring Bitcoin in this time of uncertainty. As the market recovers, operators bet on bitcoin. The dominance of Bitcoin is increasing, the bullish signal having been given a few weeks ago with the close above 42%.
Bitcoin dominance is changing above 44% resistance. For now, dominance continues to climb. It could quickly reach the weekly resistance at 47%. For altcoin enthusiasts, the dominance should run out of steam quickly. Indeed, if the price breaks the resistance, the altcoins could suffer. Could dominance soon come out of the range that has been in place for over a year?
The RSI is bullish. This indicator does not display an end of trend. It will be necessary to be attentive to a possible change of dynamics or to a break of the upward trendline to see a shortness of breath appear on this graph.
Bitcoin leads the way, but altcoins resist
Bitcoin attracts capital. We see this in particular thanks to the dominance of Bitcoin. As long as Bitcoin appreciates, altcoins will follow. On the other hand, if Bitcoin resumes a bearish momentum, altcoins could suffer strongly.
The capitalization of altcoins is at the level of the bearish trendline initiated last August. A rejection could return the course to the level of the support at $480 billion. On the other hand, if the buyers push and the bearish trendline gives way, the price could reach the next resistance at $670 billion. Despite this increase, the price has still not marked a peak above the previous one at 618 billion dollars.
Whatever happens, the price will remain below the bearish trendline initiated in November 2021 and below weekly resistance at $670 billion. As long as this is the case, altcoins will remain fragile.
The momentum is bullish. the RSI managed to make a new high by closing above 59 RSI. As long as the momentum continues, there will be nothing to report on this indicator.
L’Ether to the possibility to join the resistance $1,900. Whatever happens, a return to $1,350 seems possible and would not affect the dynamics. To get out of tidied up, the buyers are going to have to push and break the resistance at $1,900. Warning ! Bitcoin attracts capital at the start of the year. If this trend continues, but Bitcoin weakens, altcoins could suffer. The dominance of bitcoin is still in a range, but the price could quickly reach the weekly resistance at 47%. An exit from the top of this range would bode ill for altcoins. The capitalization of altcoins is bullish in the short term. Let’s hope the momentum continues!
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