After the approval of the Spot Bitcoin ETF, it is clear that the market did not particularly react to the increase, except for the first hours after the announcement. With Bitcoin approaching $40,000, pulling the majority of the market into its decline, the question now arises as to the path the market will take over the coming weeks. A continuation of the downward momentum? A trend reversal to seek recent highs? This is what we will see now by going to TradingView.
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The market continues to evolve in uncertainty
The cryptocurrency market has been evolving for several weeks below the $1.64 trillion resistance zone. Despite some bullish breakout attempts, the price has not been able to overcome it, which is currently showing the strong position of the sellers. Currently, we have nothing special to report other than to maintain bullish momentum on a weekly scale, the resistance zone must be be returned as soon as possible.
If the market fails to break free from this and continues to develop below this technical zone, the way will be open for a return to 1,244 billion of dollars. At the moment we are still involved uncertainty and in the waiting time in terms of the dynamics that the market will take. Is this the same dynamic for altcoins? This is what we will see now.
Altcoins continue their lateralization
Regarding altcoins, the situation is slightly different compared to the total capitalization of the market, as there is a lateralization of the price between 455 and 500 billion dollars. Ultimately, with altcoins not developing at all for many weeks, we are also in a situation of uncertainty.
If Ethereum comes to expand its overperformance facing the king of cryptocurrencies over the next few years, this could lead the altcoin market to pass the 500 billion dollars by closing above this level. It is threshold to monitor so altcoins can regain one bullish momentum by making an upward resolution. Our weekly bias favoring these assets will remain bullish as long as they do not close below 455 billion dollars.
Bitcoin’s dominance marks a trend reversal
Since last week we haven’t nothing special to add in terms of the scenarios that we have mentioned since they are still relevant. However bearish scenario seems to become clearer with one weekly closing of bitcoin’s dominance, which is less than 51.45%.
With a close below this key threshold, this paves the way for a return of dominance towards the upper limit of the previous rangewhich also leaves a bullish window for the rest of the market ie. ethereum and altcoins. The coming weeks will need to be closely watched for the balance of power that bitcoin maintains in the market.
As for the ETH/BTC pair, it won’t be not mentioned today since the track always exists below 0.060 BTC have very little volatility. So let’s be patient and keep in mind the same scenarios as last week, hoping for one break of this key threshold, allowing the asset to extend its trend towards the king of cryptocurrencies.
The decentralized financial sector retains a key threshold
In the same way as the capitalization of altcoins, the decentralized financial sector is developing in a lateralization dynamics while still managing to stay above 64 billion dollars. For momentum to be favorable for buyers, the challenge lies in the recovery of 75 billion dollarswhich will allow the sector to continueattract some of the capital from the market crypto.
Bias will remain bullish as long as capitalization will remain above this key threshold, shown in blue. If the market fails to hold above, the way will be open for a return to the decline by initially seeking the $59 billion.
At the moment, we had nothing more to add to the weekend’s crypto point, which overall leads us to conclude that the market is in same situation as last week. Being patient undoubtedly is most important point to respect the moment by sticking to your trading and investment plan. Monitor key levels as we have identified, the probability of a bullish or bearish scenario and adjust the use of your capital accordingly.
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