In this new crypto update of the weekend, we will take stock of the cryptocurrency market following the passage of bitcoin above $35,000 and ethereum which is fast approaching $1,900. It is clear that the market experiencing a nice increase since the second half of October, this dynamic will it continue? This is what we will see without further delay by analyzing the evolution of different graphs with respect to certain key levelswhich will allow us to identify the most plausible scenarios and the bias to have on the market.
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New high for the total capitalization of cryptocurrencies
Since last week’s analysis, the cryptocurrency market has succeeded, for the first time since 2022, in overcoming the technical level which is at 1,244 billionwhich testifies to the buying force that the market is currently experiencing.
While we were warning about a potential technical rejection on this resistance, this scenario seems to move away in favor of a continuation of the upward dynamic. However, nothing is decided. In addition to a weekly close which must be above this technical level, the market must avoid bearish reentry within the previous range.
So, as you have understood, the whole issue lies in the market’s ability to maintain the current technical level. If he succeeds, the way will be open for a return to 1,644 billion dollars where the rise could be strongly accentuated for all altcoins. In this context, let us now look at the capitalization which is solely dedicated to these assets, which excludes the capitalization of bitcoin and ethereum.
Cryptocurrencies in full bullish momentum
Concerning altcoins, it is clear that the market has just freed itself from its previous summitdated July, which testifies to the bullish momentum in which altcoins evolve. Thus, in addition to the need to maintain the technical level at $355 billionthe latter are currently taking charge of the upper limit at 405 billion dollars.
If altcoins make a comeback at this technical level, will they manage to free themselves from it in the same way as the total market capitalization? If they succeed, this would make it possible to register a brand new peakhigher than that of August 2022. In this context, an exit from the range would allow altcoins to register powerful upward movements of the order of several tens of percent.
For the moment, the bias to have is favorable to the increase provided that they do not reverse the downward trend with the reintegration of the previous technical range. The next few weeks will be to follow closely for the market, there is no doubt about it. However, for them to progress north, altcoins depend in part on the bitcoin dominancewhich we will see without further delay.
The dominance of bitcoin is slowing down, a change in trend to be expected?
Since our previous analysis of the dominance of the king of cryptocurrencies where we highlighted the strength of the courseit should be noted the first sign of slowdown on a weekly scale, which has allowed altcoins and ether to regain strength in recent days.
So, what should we consider? Be the king of cryptocurrencies will preserve its momentum and will take the direction of 57.25% dominance, this will lead ethereum and altcoins to register low performances, the king of cryptocurrencies will not be able to maintain itself on the current level and will operate a downward reintegration towards the 51.45% to begin with. In this context, the outperformance that we have seen over the past few days for Ethereum and altcoins will continue to continue. to beat your full during the next few weeks.
As for the analysis of ETH/BTC, this will not take place since the asset does not do anything interesting, except a rebound which demonstrates its strength against bitcoin. Not finding ourselves faced with an important technical level, we will look into its situation as next week when its price action will be more interesting.
DeFi cryptocurrencies continue to rise
Finally, for our last part of this crypto point of the weekend, we can raise the interesting setup cryptocurrencies from the DeFi sector which, unsurprisingly, evolve in the wake of the total capitalization of altcoins. By freeing itself from 47.5 billion dollars, the sector bears witness to the arrival of incoming capitalwhich should allow the course to take the direction of 55 billion dollars.
To maintain the upward momentum, like the rest of the analysis, the price must be able to stay above resistance under which it has been operating since May 2023. If it succeeds, the bias to have will be bullish and will allow altcoins to continue progress bullish towards resistances which are located higher.
Here we are at the end of this analysis, which should allow us to take a step back as for the situation of cryptocurrencies, in particular altcoins, vis-à-vis ethereum and bitcoin. For the moment, the trend is still bullish with the breakage of a large number of resistances, there is no reason to look for a downward entry point until we have signals which would confirm a reversal of the downward trend. However, it is now appropriate to monitor resistance newly acquired to ensure that they will support within the next few weeks.
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