Bitcoin Spot ETF: The countdown begins for the crypto market

The SEC’s decision looms leading to the market operating amid complete uncertainty, although BlackRock and many other media may be particularly optimistic that the SEC will not be able to reject all requests. With volatility seemingly increasing in recent days, what direction will the cryptocurrency market take regarding this event, which will undoubtedly have an impact on the future of bitcoin? Today, for this first crypto update of the 2024 weekend, we will identify the levels to watch, the bias to have and the scenarios that should be discussed in the coming weeks.

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The cryptocurrency market continues to move under resistance

The price of the total capitalization of the cryptocurrency market in relation to the dollar on the weekly unit of time (1W)
The price of the total capitalization of the cryptocurrency market in relation to the dollar on the weekly unit of time (1W)

Since our previous market analysis, dated the second half of December, the cryptocurrency market has not done so it failed to expand the dynamic of its upward momentum. Still finding himself in trouble during resistance zone at $1640 billion, it should be noted that nothing has yet been decided for the cryptocurrency market. Before the end of January, if the market cannot recover this key threshold, it is very likely that sellers will be able to keep track of the market.

As a result, the capitalization could return to approx 1244 billion dollarsthe old resistance dated year 2023, on which there is no did not have a withdrawal on a weekly basis. For the moment, given the Japanese candlesticks, it is clear that we are in one period of uncertaintythe market is more than ever in uncertainty regarding the approval or not of the bitcoin ETF by the SEC.

Are Altcoins Suffering, What Direction Will They Take?

The price of the capitalization of altcoins on the cryptocurrency market in relation to the dollar, excluding bitcoin and ethereum, on the weekly unit of time (1W)The price of the capitalization of altcoins on the cryptocurrency market in relation to the dollar, excluding bitcoin and ethereum, on the weekly unit of time (1W)
The price of the capitalization of altcoins on the cryptocurrency market in relation to the dollar, excluding bitcoin and ethereum, on the weekly unit of time (1W)

While the previous weeks were particularly bullish in the cryptocurrency market, sellers have reappeared after capitalization successfully achieved our first technical target of 500 billion dollars. In fact, a particularly strong rejection took place where altcoins wereinability to extend the upward momentum above this technical threshold. From now on, what bias should we have on these assets?

Pulling back on the previous peak from the summer of 2022, as long as the $450 billion is maintained, we will have a bullish bias on the market in the next few weeks. For this reason, altcoins will need to break free from $500 billion soon to take the direction of a new target, placed on 626 billion dollars. For now, even though the bias is bullish on these assets, it is advisable to prepare for all scenarios.

So if altcoins fall back below $450 billion, that will be a particularly strong signal. negative which will cause the market to initially take the direction off upper terminal of the range to $400 billion, the level that absolutely must not be lost, as a reintegration of the previous range could cause altcoins to find the pivot at 337 billion dollarswhich would lead to a drop of more than 30%.

The dominance of bitcoin defends itself particularly well

The price of the dominance of the king of cryptocurrencies on a weekly scale (1W)The price of the dominance of the king of cryptocurrencies on a weekly scale (1W)
The price of the dominance of the king of cryptocurrencies on a weekly scale (1W)

While dominance had been in full decline for many weeks, returning to a key threshold that we had occasion to discuss on several occasions at 51.45 %, the king of cryptocurrencies has just catch up in a few days the entire decline in recent weeks, demonstrating the asset’s strong position relative to the rest of the market. Therefore, this explains a lot altcoins are falling and robustness of bitcoin towards sellers.

From a more general point of view, this is explained by pretty much everyone story around the ETF. In the current state of the course, given the strong reintegration of the gray zone, dominance has a good chance to continue its bull run by setting new highs above 55%. In the current context, for this month of January 2024, bitcoin has a good chance of maintain a position of strength putting altcoins aside when it comes to performance. The next few weeks will be particularly interesting and will have to be watched closely as to the position of strength that the king of cryptocurrencies will retain or not.

Ethereum continues to struggle

Price of Ethereum against Bitcoin on a weekly scale (1W)Price of Ethereum against Bitcoin on a weekly scale (1W)
Price of Ethereum against Bitcoin on a weekly scale (1W)

While the dominance of the king of cryptocurrencies is regaining strength, we cannot say the same about the situation of ethereum against Bitcoin. While a small recovery took place last October, Ethereum was pleased withdevelop under technical resistance at 0.055BTC, preventing it from registering a trend reversal. Currently, Ethereum is at lower limit of the area where he has been developing for many months.

If he registers a close lower than 0.051BTC, he will take direction of 0.046BTC, the next phase of the bearish dynamic in which Ethereum is currently developing. The bias to have will be bearish as long as the asset continues to develop below 0.05BTC. Therefore, today we will not analyze the dynamics of the capitalization of DeFI altcoins since the development is identical to the total capitalization of altcoins.

Here we are at the end of this weekend’s crypto update! For the next few weeks you now have levels to monitor. What is certain is that bitcoin will to catch most likely the entire market’s attention until the SEC’s decision. Altcoins and more generally the crypto market are in one key period. But the whole difficulty lies in consequences of such notification. Do we want one sell the news who will make the market go the bearish way? The rest of January is likely to be particularly interesting and will undoubtedly decide dynamics that the sector will experience in the coming months. In the present state, demonstrate Warning and do not take too large positions.

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