Bitcoin and cryptocurrencies are in the green, it is urgent to be careful!

In this new weekend crypto spot, like every Sunday, we will focus on the general situation of the Bitcoin and cryptocurrency market by defining the biases to have, the technical thresholds to watch and what has happened in the classroom for the 7 days last. This will allow us to take a step back from our previous analysis by asking ourselves whether the established scenarios are confirmed or not.

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Cryptocurrencies touch the value of 1000 billion in capitalization

Price of the total market capitalization of cryptocurrencies on a daily scale (Bitcoin, Ethereum and altcoins).

Last week, we discussed the retracement of technical resistance at $780 billion (not shown here) that was the first stage of a bullish trend reversal. After managing to regain $800 billion and then resistance at $845 billion at the confluence of the MA100, buyers managed to operate a short squeeze that resulted in a very strong bullish move.

The price of the cryptocurrency cap reintegrated the previous range while also regaining the pivot level that was built from September to October 2022, which paved the way for a return to the EMA200, which the price had not found since last April! Although this growth is very interesting, it should not make you lower your vigilance towards the financial markets.

We are at a technical confluence which is the daily EMA200 where it sits just above a technical resistance at $980 billion. However, it’s important not to rush into current levels of FOMO, although they may, depending on your investment thesis, be quite attractive for the long term. One-pull consolidation is possible, but how far? In order not to break the dynamics, the capitalization of cryptocurrencies can return up to 850 billion dollars to confirm the bullish exit from the range in which the prices have evolved since November.

Altcoins late?

Cryptocurrency market capitalization price on a daily basis (excluding Bitcoin and Ethereum)
Cryptocurrency market capitalization price on a daily basis (excluding Bitcoin and Ethereum)

Regarding the capitalization of altcoins (excluding the capitalization of Bitcoin and Ethereum), we can see that the price is lagging behind as they have not reached, for now, the 200-day EMA. Currently, altcoins have broken out of a technical confluence that is the 100 MA and the resistance level at $332 billion, which the price continued to decline in November and December.

Currently, the price is below the $350 billion support above which the price was maintained from June to last October. At the moment, as the daily momentum is bullish, there is no doubt that a re-entry of this support will pave the way for a more sustained rally in altcoins, which can take advantage of it to return to the 200 EMA that is currently is in the union with a major area at 375 billion dollars.

Here are the two technical levels that altcoins will need to retrace if they wish to return to the resistance represented in red at $400 billion. At the moment, nothing has been decided yet despite the strong momentum we have experienced in the last few days. To avoid a bearish reintegration of the altcoin with the manifestation of sellers, the ideal scenario would be to keep the price above $332 billion so that it does not fall below the 100 MA.

A Bitcoin that once again shows its strength against other cryptocurrencies

Dominance rate of Bitcoin to other cryptocurrencies on a daily scale (1D)
Dominance rate of Bitcoin to other cryptocurrencies on a daily scale (1D)

In terms of Bitcoin dominance, what has happened in the last few days is very interesting as the bearish scenario played out before giving way to the realization of an uptrend in the price of dominance. As agreed, the price has returned to the MA100, which has caused a very strong start for Ethereum and altcoins. A large number of cryptocurrencies saw double-digit growth. The liquidity that was flowing into Bitcoin was gradually shifted to the rest of the market.

However, a very strong comeback happened in Bitcoin, which decided to regain itself as the market leader. Although altcoin prices have risen, that hasn’t stopped the cryptocurrency king from soaking up more capital, giving him the chance to return to $21,000 in a matter of days.

Reaching a key level, it is possible to witness a decline in Bitcoin’s dominance for some time. This would be an opportunity for the cryptocurrency market to take a break to achieve a technical traction that is necessary if we want a continued growth in the market.

Ethereum is still moving in the same technical area

Ethereum Price vs Bitcoin in 3D unit of time

Regarding the situation of Ethereum vs. Bitcoin, we can see that the price is still developing in the upper area of ​​the range that has been built since April 2021. At the moment, the price is not able to overcome the upper limit of the range at 0.0789 BTC, especially since a second resistance at 0.0769BTC is located just below. If Ethereum manages to overcome this double resistance, the price will surely go towards 0.085BTC.

It’s kind of a real problem for buyers hoping to see a strong price increase. A rising range breakout would be an opportunity for Ethereum to lead the market and outperform Bitcoin. This would be an ideal context for altcoins that react better to the rise of Ethereum compared to the rises of the king of cryptocurrencies. However, if the price fails to do so and loses its 3D trend with its trio of EMAs, it would pave the way for a return to the MA100 and a good performance of the asset against Bitcoin.

Decentralized finance in good standing

Decentralized financial cryptocurrency capitalization price on a daily scale (1D)
Decentralized financial cryptocurrency capitalization price on a daily scale (1D)

Regarding the capitalization of DeFi cryptocurrencies, the targets mentioned last week have been largely achieved as the price has returned to the range in which it evolved between September and November 2022. Reacting to a pivot zone at $44 billion, the price now has a target: to stay in the range by staying above the $40 billion lower limit.

If this target is achieved, it would be a sign of the strength of DeFi assets, which should alert investors to the need to monitor cryptocurrencies operating in this sector. The second issue is the restart of the pivot zone that we mentioned. If the price breaks this zone up, it could head towards the 200 EMA where the upper limit of the range is located at $48 billion.

Here we are at the end of this technical analysis. This week has been very exciting and what will follow risks being a continuation as the market will have to choose between, on the one hand, the continuation of a bullish momentum favored by a rather weak dollar or on the other. a trend reversal that can be set by marking a local peak at current levels. What is certain is that the growth we have just experienced is strong, and for it to continue, there must be a pullback.

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