In this new crypto point of the weekend, we will analyze the development that cryptocurrencies have experienced in recent days, quite rich in volatility on the scale of the range that we have developed in recent weeks. Has there been a change on the altcoin side? This is what we want to see as soon as possible by going to the charts without further delay!
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Cryptocurrencies are in the middle of a battle with a great level
Since last week, the situation has not changed much and the market is now in contact with a technical level of $1034 billion. Previous resistance, before it has acted as support, will the market manage to re-enter this level upwards? If he succeeds, it will be quite a positive response in front of the sellers, which will allow market value to bounce back against its major resistance of $1.147 billion.
For now, as long as this technical level is not recovered, it will be quite complicated to have a bullish bias in the market over the next few months. Furthermore, if a rejection occurs at the current technical level, it is certain that the market will be back at $920 billion.
Altcoins are still under resistance
For altcoins, it is clear that on the H4 scale they have been developing under resistance for several days and are awaiting a move on the side of Bitcoin and Ethereum. Now keep an eye on the $313 billion technical level. A close above this level will allow altcoins to take the direction of $320 billion, the technical level to regain to re-enter the range and hope for a return to $340 billion.
But if Bitcoin and Ethereum turn lower, it’s a safe bet that altcoins will follow this momentum. For now, as long as the gray area is maintained, the worst is avoided. In fact, a passage below this level in H4 and 1D will cause the capitalization of altcoins to fall to $290 billion, which is the support for the years 2022 and 2023 for this asset class.
Regarding the dominance of the king of cryptocurrencies, this will not be discussed today, as it is still on the resistance mentioned last week of 49.71%. Thus, the content of our comments from the previous analysis has not been changed, which requires us to keep our eyes riveted on the same technical thresholds.
Ethereum fails to maintain a position of strength
Faced with the king of cryptocurrencies, which has maintained its strength against the rest of the market, it is clear that ether has not been able to maintain the upward trend that it has been in recent weeks. From this level, where the trendline had been broken, it reintegrated downwards, causing the market to return below its central pivot point (grey zone) over the past few days.
Now at technical support at 0.065BTC, a rebound will need to be witnessed for ethereum to regain strength and regain pivot. However, given the technical situation of the price, it is a safe bet that the downtrend may continue its way to find the year lows in 2023 at 0.062BTC. The next few weeks will be very interesting to follow and will give a fairly clear idea of the trend that will emerge between the two assets for the rest of the summer.
DeFI cryptocurrencies put to the test of resistance
For the decentralized financial sector, it is clear that the situation is quite complex. Despite a calculation problem in the capitalization of DeFI by TradingView, it is clear that the market is under resistance at $36.8 billion, reinforcing the likelihood of the bearish scenario that we mentioned last week.
In absolute terms, until the $39.75 billion is recovered (top level), the bias to have is clearly bearish with a target corresponding to the $32.70 billion green line. This level represented in green acted as support last November before being resistance for a few weeks. Thus, it is very likely that the price will react to this level if the market returns there.
Here we are at the end of this analysis of the cryptocurrency market. What you need to understand is that despite the upswing, the market is under resistance from a general point of view, which has led BTC to maintain its leadership status, while the technical interest of the ETHBTC pair is sidelined. In fact, Ethereum is not in a favorable position against the king of cryptocurrencies, on the contrary! This thus plays to a large extent on the dynamics experienced by DeFI cryptocurrencies and more generally altcoins.
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