In this new crypto point of the weekend we will have the opportunity to return to ours about last week, the scenarios we discussed and what to infer for the coming weeks in the cryptocurrency market. For the moment, it is clear that the dynamics are satisfied with a range of a large part of the market’s assets. However, some altcoins are not waiting for bitcoin and ethereum to drive a bullish recovery like XLM, LINK and MKR to name a few. Without further ado, let’s go straight to TradingView.
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The cryptocurrency market on technical support to preserve
Since last week, after technical breach of the $1.16 trillion threshold, we mentioned the need for the market to remain above this technical threshold. This is now validated as resistance has turned as support for several days (green zone). HoweverThe market did not rise stronglywhich testifies to buyers’ fragility. So how will the market react?
At the moment there is nothing special to mention, as we are at levels similar to last week in terms of price, the market continues to develop in a technical range, which can undermine the psychology of participants if they change their bias regularly. For now, as long as we continue to move in H4 between $1.128 billion and $1.183 billion, there will be nothing special to report.
Altcoins move in step with the total market capitalization
For altcoinsis the situation somewhat similar to the total market value, since a resistance to 350 billion dollars was recently won and then reversed as support, allowing altcoins to have a technical threshold to rest on before resuming volatility.
You can see it on the graph, the challenge now lies in the market’s ability to remain at current levels to jump towards the technical area (shown in red) at $372bn. If the market does not maintain the current zone, it will move towards $337 billion before potentially turning off towards $290 billion. Currently we are in the technical area. A break of the resistance would be particularly interesting as it would allow many altcoins to register nice gains over the coming weeks.
The dominance of the king of cryptocurrencies in favor of a technical rebound?
Currently there is since last week not much special to report on the dominance of the king of cryptocurrenciesif not only the technical recovery at the 50% dominance threshold, which shows that the strength of bitcoin against the rest of the market is still relevant.
From now on, it will be necessary to monitor the size of the setback. If it is unable to reach the 50.95% technical threshold, then the first sign of a potential trend reversal may take place, which may take dominance below the 50% dominance technical threshold. If this happens with a hold on bitcoin within reachthis could be good news for ethereum and altcoins, which could suck some of the liquidity out of the market.
Ethereum in trouble against bitcoin, will it get out of it?
For the ETH/BTC pair, there is nothing to report since last week, except only the rejection (despite a rising top) at the $0.063 technical level. Currently, the price is moving between this technical level and the $0.060 support. As long as we don’t get out of it, there will be nothing special to report. The whole point is in the bullish resolution of the ETH/BTC pair so that altcoins can partially benefit from the liquidity of bitcoin.
However, nothing assures us that the decision will be bullish, which makes us consider different scenarios. It is possible that the king of cryptocurrency preserve one strong dominance at least until end of summer, which may cause Ethereum to fall below the 0.060BTC mark. In this context, altcoins could develop in the same dynamics without registering any particular increases. Finally regarding DeFI capital letters, the situation is exactly the same as last week. It is therefore of little use to repeat the previously mentioned remarks.
Here we are at the end of this technical analysis of cryptocurrency market. Over the next few days, it will be necessary to closely monitor the price reaction to the key levels we have identified. Depending on what happens, we will either continue to move within the area or we will have a solution that will lead to one of the scenarios we have discussed. At the moment, it seems important to closely monitor the dominance of the king of cryptocurrencies and the reaction of ethereum in the event of a change in direction. The balance of power between ETH and BTC is therefore crucial to the momentum that altcoins will take in the coming weeks.
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