Altcoins in trouble – As we know, the year 2022 will remain a bad year in terms of performance for altcoins. If Bitcoin continues to fall, Ethereum may well slip below $1,000 and take the altcoins with it. Indeed, altcoins are close to a new bearish wave. Buyers need to react quickly. Despite this, are the whales buying the fear of small carriers? Let’s analyze the situation on Ethereum and altcoins.
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Decrease in volatility for Ethereum on a daily basis
For the past few weeks, cryptocurrencies have been experiencing a period of low volatility. Indeed, Ethereum (ETH) has, for example, set up a ranges between $1,310 and $1,230 :
Recent fences above $1,310 allow us to think that Ethereum could continue to bounce in the coming days. However, the rise is timid for the moment, and the sellers push the buyers back at the level of the resistance. A fence greater than $1,350 could make it possible to join the next resistance at $1,580. Note, a bearish trendline is on its way and it could continue to to reject the lesson.
In the event of a victory for the sellers, the price would fall below the last low at $1,074 and would probably join the next one bracket at $1,090. This support will be to be kept at all costs to try to change the dynamics in the short term.
The momentum, for its part, is encouraging, the RSI evolves above the bullish trendline. As long as this is the case, we can hope that the buyers retain control. Whatever happens, buyers will have to exceed $1,680 then $2,030 to find a uptrend in the medium term. Given the current context, this may take time.
Ethereum shows signs of feverishness against Bitcoin
When latest editionwe mentioned the possibility that the pair ETH / BTC is made to reject at the level of bearish trendline. It is done :
Last June, Ethereum managed to bounce below the bottom of tidied up. A nice rebound against Bitcoin that ended when The Merge arrived. Therefore, the momentum could become bullish again in the event of a definitive breakout of the resistance corresponding to the top of the range. If it breaks, that would be great news for altcoins. However, for the past few months, the pair has struggled to mark a high above the previous one, and sellers could take advantage.
If the sellers manage to break the intermediate support of the range, the price could quickly end up at the level of the bottom of the range and they could even take the opportunity to break the range from below. After having managed to settle between the top of the range and the intermediate support of the range, it would be really negative to step back and find yourself at the bottom of the range.
The bearish trendline rejected the RSI once again. It would take a quick reaction from traders to prevent momentum from continuing to fall. A break of 47 then 43 of RSI would be new bearish signals for the class.
Whales buy fear?
Whales are entities with more than 1,000 BTC in wallet. For Ethereum, it may be interesting to study whales with more than 10,000 ETH. The period remains dark, and it will probably take time to find Ethereum as attractive as in 2021. However, these whales seem hungry :
While the whales had distributed of Ethereum from July 2021 to March 2022, it would seem that the situation is changing. Indeed, these entities seem to have changed their behavior for several months. More recently, the whales decided tobuy fear novice investors. It’s possible they’re interested in Ethereum as it still hasn’t made a low since June. Indeed, unlike Bitcoin, the coin Ether resists selling pressure for the moment.
Could the whales be buying to resell at the top of the range at $1,900 ?
Bitcoin attracts capital: altcoins in danger?
Bitcoin seems again attract capitalthis is the information that Bitcoin dominance gives us:
It is true that the more a support is affected, the more fragile it becomes, but the support is holding up for the moment. The bottom of the range at 40% of dominance allowed a bounce, and it may not be over. The level to watch is at 42%, if it is exceeded, the dynamic becomes bullish within this range. If this bullish scenario takes place, a return to the top of the range cannot be ruled out. Given the current context, altcoins could still suffer.
Moreover, the momentum shows a bullish signal. Indeed, the RSI breaks the bearish trendline and find a bullish momentum with troughs and rising peaks. Everything suggests that capital will continue to flow towards Bitcoin. The level at 42% can he hold?
Altcoins close to another fall?
Altcoins seem lose groundwe also notice it on the graph of the capitalization of altcoins:
The capitalization of altcoins is on the precipice. If the buyers do not defend the support at 460 billion dollarsthe price could fall by 30 % or more. the institutional bias (EMA 9/EMA 18) is a barrier, it will have to be exceeded and break the resistance at $520 billion to find colors on the altcoins side.
The momentum is encouraging, it keeps the support at 39 from RSI. This support is a key area for the RSI, we would have to find a new bounce in the coming days.
Whatever happens, altcoins will remain brittle as long as the capitalization evolves below the bearish trendline and that the dynamic does not change on a weekly basis. For this, it will be necessary to free oneself from the resistance at $670 billion.
Since The Merge, Ethereum has been losing ground to the king of cryptocurrencies. In this complicated period, capital seems to be turning again to the safe haven asset of cryptos. In the event of an overrun of 42% on the bitcoin dominance, altcoins could suffer. However, entities with more than 10,000 ETH placed themselves in the purchase, and in a non-negligible way. Are the whales betting on the strength of Ethereum? It is true that the price continues to evolve above the lows of last June. Can altcoins recover in extremisand thus avoid a new wave of decline?
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