After the week tonight, the situation has particularly evolved with a powerful rise in the price of cryptocurrencies. Bitcoin approaching $30,000, Ethereum at the gates of $2,000, but still, plenty of altcoins failed to chart powerful gains following last week’s decline. This testifies to a aspiration of capital by the two most important cryptocurrencies on the market. Will this situation continue? This is what we will try to answer.
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Cryptocurrencies are under resistance
There last weekwe mentioned the fact that the Cryptocurrency market It is on a three-level technique which is interesting and must imperatively rebound in order not to find its low points at the end of 2022. The macroeconomic context with the Silicon Valley Bank bankruptcy a likely impact on the cryptocurrency market given the powerful rise in prices.
Currently, the total market capitalization Sits on a major level which, after performing as support in 2021, now acts as resistance. Will the course be able to break free? If this happens, the upside could be powerful since we assume the exit from a range in which the price has been moving for almost a year. However, until proven otherwise, the current level is a resistance, especially since it is located just after the EMA200 on the 3D time unit.
If the price fails to reach the franchisor, the invalidation will be clear to buyers and will probably cause the price to return, at first, to its pivot level at $920 billion. If the price manages to overcome its EMA200, the first objective is the technical level at $1.3 trillion.
About them altcoinsthe situation is particularly different because the increase in market capitalization has been largely accelerated by the rebound of bitcoin and ethereum. The latter are still under resistance despite the recovery of the MA100. Indeed, it is not the franchises of resistance that are located at 400 billion dollars.
if they altcoins If it breaks through, the price will probably return to the upper resistance which is located at 440 billion dollars on which the price was rejected during the summer of 2022. As a result, you can verify that the capital, at the currently haven’t actually headed into altcoins which have reliably benefited from the rise of bitcoin and ethereum.
Therefore, since the power bought is not very large, there are only a few doubts that a downward reversal of bitcoin and ethereum will be rather a bad sign for altcoins. Indeed, this could pave the way for the price to return to the low point of early March at just over $320 billion.
Bitcoin is still the king in the market
Regarding the bitcoin dominance course, the analysis of the week ended with this price on the wrong foot since the course, despite the downward trend which turned out to be true, rebounded strongly, remaining above its support at 43.10 /43.20%. If the resistance is granted in confluence with the EMA200 which is no longer talked about after several weeks, the dominance has exploded in the house after having now placed itself under a resistance at 46.85%.
It must be verified that the margin is still possible for a push of dominance on the upper limit of the range at 48.25% in the event that bitcoin pushes up towards $30,000. However, with the activity at the high end of the wire range, it is possible that the uptrend will slow down over the next few weeks such that there is an increase in the price of ethereum strength and the altcoins are pouring out. bullish.
Ethereum located in a key moment
Regarding Ethereum, the situation is very interesting. With the strong price of the king of cryptocurrencies sucking up a majority of capital, Ethereum price lost strength as it fell back below its MA100 in order to head south the pivot of the wide range in which the price moves after April 2021. This pivot being in confluence with the EMA200, in view of the many reactions that the price has made on this level, there are only a few on the importance of this zone.
It’s maintainer or never for ethereum to bounce back. Indeed, if ethereum does not manage to react on this pivot zone, the price will operate the same dynamic as in May 2022 by falling sharply to the lower technical levels. It will therefore be necessary to monitor the closing of this weekend since a maintenance of the price above this level will be rather positive for ethereum. Indeed, this allows me to turn back towards the MA100 which is located at the very end of a resistance which must be broken on the rise to register a real upward momentum.
DeFi cryptocurrencies are in an interesting situation
To end this analysis, as always, we will focus on the capitalization of decentralized finance which is doing pretty well right now. Last week, we mentioned the need for the price to stay above the MA100 which is at the confluence with the pivot zone. It is chosen made for the capitalization which, after a significant wick on the $37 billionto successfully save the fence on the 3D time unit.
Currently, the price is in the process of breaking out of a resistance at $48.75 billion which we have already mentioned many times. If the price manages to reach acceptance above this level, the next few days will be very interesting and could see a continuation of the bullish momentum. In this context, the $60 billion capitalization could be obtained. However, much of this will depend on Ethereum’s ability to bounce off the pivot we mentioned earlier.
Here we are at the end of this weekend crypto point. As you said, it’s the bitcoin which has dominated the market for more than a week and it is quite possible that this tendencia may continue for some time. Notwithstanding, given the situation of bitcoin’s dominance in the upper part of the range and the ethereum situation on its pivotwe have to face between now and the end of March a liquidity rotation in favor of altcoins provided that bitcoin is not set to go down. This week will be important and punctuated by the decision that the FED will take on the interest rate.
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