In this weekend crypto update, like every Sunday, we will analyze the market in various aspects to determine the current trend as well as the key levels to watch creating a key bias for the coming weeks. The first thing to remember is that 2023 starts in the green for cryptocurrencies. However, will this continue for long? Without further ado, let’s jump right into TradingView.
Will cryptocurrencies continue to grow?
From a general perspective, we can see the market’s capacity, at the moment, to maintain above all its levels since 2017. He created a truth SUPPORTING which should not be broken down unless we want to see a bigger drop cryptocurrencies during the coming months of 2023.
The last few days, total capitalization of cryptocurrencies managed to free himself in the rise of ea technical resistance (red area) to 775/780 billion dollars. In accordance with the EMA trio, it is the first step to operate a trend reversal. From now on, it is essential that the price does not re-enter this bearish technical zone to avoid giving way to sellers in the market.
Initially, if cryptocurrencies manage to stay above the current zone, we can predict a return of capitalization to 800 billion dollars. It is a technical level that has functioned as support and resistance. Second, if this level is also broken above and then held by buyers, it is quite possible to see the price retrace to the MA100 in line with a technical zone at $845 billion. For now, it is the bullish bias that should be favored.
Are Altcoins Still Struggling?
Regarding the capitalization of altcoins which excludes Bitcoin (BTC) AND Ethereum (ETH), it can be seen that the price situation is less advanced compared to what we have just analyzed. Indeed, it is still located below the resistance which is in line with the triple EMA, namely EMA32. It is likely that both Ethereum and Bitcoin will need to continue moving higher if we wish to see a breakout from the current technical level.
At the moment, the bias to have is heavy on the capitalization, but if the price manages to overcome the resistance, it will allow for a much more favorable context for the growth of many altcoins. Of course, that’s on the condition that Bitcoin and Ethereum don’t screw up. Assuming the bullish scenario materializes, we can set two bullish targets.
The first is 320 billion dollars. This is a former daily support that has never been retested as resistance. If the price returns to this level, it may do so to prevent buyers from seeking higher price levels. A recovery from this level will allow the price to fill a gap seeking the MA100, which the altcoin capitalization has not returned to since November.
Bitcoin’s dominance declines slightly in recent days
While doing quite well during the first half of December, which hurt the rest of the market, bitcoin dominance he has now been sidelined since late December. In addition, dominance has dipped lower since early January, which has allowed Ethereum as well as several altcoins to rise. However, will this dynamic continue?
At the moment, the dominance is trading below 41.80%, a former support that is currently acting as resistance. However, trying to stay above the EMA200, we are facing a compression setup that will most likely lead to volatility in the coming days!
The no-miss level for Bitcoin dominance stands at 41.32% as it will mean a shift in the direction of capital towards Ethereum and some altcoins. In case the price goes lower and it does not react to the MA100, the price may fall more significantly. For those who choose an investment in Bitcoin and do not wish to see its influence on the market diminish, the price should ideally stay above the EMA200 regaining 41.80%.
Ethereum, the solution to boost other cryptocurrencies?
As for Ethereum, things haven’t changed at all as it continues to swing up and down within the current range we identified in the previous crypto spots of the weekend. If Ethereum manages to push back against Bitcoin by absorbing some of the capital, it will allow altcoins to be in a favorable situation. If Ethereum manages to overcome the resistance at 0.076 BTC and the altcoin capitalization manages to overcome its resistance, a bullish momentum could lead to Bitcoin being sidelined.
However, although the bias to have Ethereum within its range is quite strong, we are not immune to missing the current pivot with a price retracement below 0.073 BTC. In this case, it will be important to react quickly and wait for a strong recovery from Bitcoin, which will be better than Ethereum. At the moment, there is nothing additional to report on the ETH/BTC pair.
Can DeFi cryptocurrencies recover?
To conclude our analysis for this Sunday, we can briefly look at the capitalization of decentralized financecalculated from TradingView, to have an idea about the evolution of the sector. Since our previous analysis, the downward momentum had extended for several days, reaching 30 billion before recovering strongly and breaking the December highs.
Now, the momentum is clearly bullish for the capitalization, which indicates a very interesting situation for the sector. In this context, this may be an opportunity, in the short term, to look in detail at some decentralized finance altcoins. If the current dynamics are maintained, we can predict a return of the course to two technical levels. On the one hand, 34.8 billion and on the other, 37 billion that will soon be MA100 compliant. As long as the 32.1 billion is held, we can maintain a large bias towards capitalizing decentralized finance.
Here we are at the end of this first crypto weekend for 2023. We can see a market starting in very interesting conditions on the technical side of the prices. However, this should not make us forget the uncertain context for 2023 regarding inflation and the impact of interest rates on the markets. As bitcoin’s dominance begins to decline, Ethereum and altcoins were able to take advantage of this to post several percent upside. However, nothing is decided yet for altcoins as a whole as capitalization is still under resistance. For the coming days, we can maintain a bullish bias relying on the continuation of price increases.
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