If you do not stand a chance to take advantage of the recent bullish move in cryptocurrencies, it is best not to increase your favorite assets for the time being. In fact, we must not forget that we have been in a bear market since November 2021. And since this dynamic has accelerated in recent months, it is quite natural that we will see an upward recovery. However, this impulse might make you believe one thing: you missed the low point. To tell the truth, we don’t know, but that shouldn’t push you to buy without determining the condition of the assets against their key levels.
Total market capitalization rebound from the top of the range?
Since last week, the market had the opportunity to bounce off the upper end of the range that we had set for several weeks. As I told you, the goal was to avoid a return to office, which is what is happening at the moment. However, remember that the daily swing pattern is bearish. Thus, in theory, we are still in an upward correction before breaking the low point down.
For the market to be able to prolong this bullish momentum, the goal is as follows: to get out of the current red zone and return to the bottom of summer 2021. It is a convergence of levels that cannot be neglected. Once this is done, the market could potentially go back to $1.2 trillion. This level was a local support that allowed the market, from mid-May to early June, to pause in its downward momentum. In the event of a downtrend reversal, the level to watch for now is the $923 billion low. In the event of a loss, it means a bullish daily trend reversal.
Bullish Momentum Sustained On Cryptocurrencies?
Compared to last week, I improved my bearish swing pattern which was misidentified and too wide. The uptrend is still preserved, and altcoins (for now) continue to fall. Therefore, the bullish bias last week was the right direction for altcoins. However, we are approaching a confluence of notable technical levels. In addition to the old daily support that has never been retested except for the past few days, we have a daily supply area that is still in effect. The H4 supply area is no longer valid but I have nevertheless rendered it for you so you can understand where it is.
The current challenge is as follows: break the daily supply zone in order to get a new bullish target on the cryptocurrencies (the supply zone which is at the confluence with the resistance). If the price is rejected at the current level, it will show the strength of the sellers who have not said their last word. For the internal structure to turn bearish again, I invite you to watch the decline at $363 billion. In case of closing or wicking below this bottom, we should consider bearish price targets.
Bitcoin Dominance Still in Unfavorable Configuration?
For now, the dynamic remains the same as in the past two weeks. Bitcoin continues to lose ground against the rest of the market. We can currently see this with a new bottom forming. This indicates that the daily trend is bearish. Currently on an important technical level, if bitcoin dominance cannot trigger a trend reversal with a recovery from (for now) 42.63%, we can maintain a bearish slope.
The price appears to be following the chart annotation I gave last week. I am not trying to describe the future movement in the same way. However, it helps to understand the structure that might occur. Yes, sooner or later Bitcoin will regain control in this bear market. Thus, the exact levels are always the same, I invite you to keep your eyes on 41.32%. This level is an important low point.
Ethereum does not give up and continues to rise against Bitcoin
I’ve had the opportunity to update this chart by replacing the old (still valid) red area with a daily view area. This allows for a larger intervention area. Currently, Ethereum has managed to extend its upward trend by continuing to post higher peaks than before. Thus, as long as we haven’t broken the previous low which is (for now) at 0.0651 BTC, the internal structure is bullish.
I would caution you to increase your vigilance at the current levels. The top of the bearish swing range should theoretically be held. So, sooner or later, Ethereum will have to fall back against Bitcoin. This reflection would be perfect in the orange viewing area. However, nothing is certain as it is entirely possible that there will be a bullish breakout of the bearish swing pattern. Better to wait for certain technical formations and rely on what we have at the moment. The goal is not to predict the future, but to adapt as quickly as possible to price changes.
The ALTPERP index should be watched carefully.
AgoIndex analysisAs of July 10, altcoins managed to gain traction by breaking out of resistance to watch. By triggering an upward breakout of resistance, a reversal occurred in the internal structure. This helped set upward targets for this indicator. While still in an upward trend, the index is currently in a weekly view overlapping the daily view. Hence, care must be taken at this time.
In fact, sellers can take advantage of altcoins returning to key technical levels to re-emerge. This will prevent buyers from breaking the bearish swing pattern. So, what is the indicator reversal signal? Looking at the current price structure, a break-down of the demand area with a loss of $1708 will confirm the reversal of the current trend.
Here we are at the end of the crypto point this weekend. If there is one thing I would like to bring to your attention, it is the confluence of technical levels that the market as a whole is facing. Whether it is altcoins or Ethereum vs Bitcoin, the market is in an uptrend daily. However, it does come at the top of a bearish swing pattern. So be careful and feel free to take partial profits. Remember that we are in a bear market with an unfavorable macroeconomic context. If the market continues to rise, there will always be new opportunities.
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