On this second crypto point of the weekend, we will continue our analysis in line with last week. Since last Sunday, the market has continued its recovery. Ethereum prices rose, as part of some news related to The Merge, last night. This allowed some cryptocurrencies to break initial resistance. However, nothing has been decided yet. So, let’s head over to TradingView for evaluation.
This market analysis is brought to you in association with Currency trading and its algorithmic trading solution Finally within the reach of individuals.
Is the market still in the same situation?
Since last week, the situation has not really changed in relation to the total market capitalization. You can see, the range is still very relevant. Within a few days, we saw a resurgence in 833 billion dollars To find themselves, for the time being, resisting 963 billion dollars. As we mentioned last week, until we work out the range, there is no point in speculating on a future move.
Thus, the levels mentioned last week should always be kept in mind. If the market breaks resistance, we can see a return to the market value On minimum support summer 2021. At the moment nothing is confirmed and it will depend largely on the volatility of Bitcoin and Ethereum.
Altcoins are still under resistance
about the alternative currenciesAnd the The situation has hardly changed because the latter did not peak above $394 billion. However, it was recorded above 340 billion, which indicates the interest of buyers, in the short term, in digital currencies. Currently at the same recent high of 381 billionThe aim is to make a new high to re-launch bullish momentum on a daily basis.
At the moment nothing is decided yet, it will be important to wait for Sunday’s close which will also make it possible to get a new weekly close. If altcoins can clear the $394 billion level, we may have two bullish targets in our sights:
- 413 billion dollarsIt is a previous support that did not remain as resistance
- 456 billion dollarsan everyday resistance that altcoins have rejected time and time again.
On the contrary, a loss 340 billion It will inevitably bring the market back to the previous low point.
Bitcoin prolonging a state of underperformance
Although last week we could have considered keeping the king of cryptocurrencies in the pivot zone (represented in blue), the market decided otherwise by extending the poor performance of bitcoin against the rest of the market. In fact, in just one month, the dominance went from 48% to 42%. The current challenge, if bitcoin wants to stay on course in this bear market, is to reclaim the 43% pivot area.
Recently, Bitcoin’s dominance has broken its lows, allowing altcoins to continue their rally in the markets. If this dynamic tends to be maintained, we can envisage, before the 40% control, two intermediate goals where the cryptocurrency king can recover:
- The 42.20%a level that acted as support and resistance for Bitcoin’s dominance
- The 41.32%Support as of February 2022
Ethereum temporarily taking over the cryptocurrency market?
Since last week, the daily bullish trend has extended on the ETH/BTC pair. The asset managed to hold on to a key level before triggering an uptrend break impulse 0.059 Bitcoin To search for the highest level, which is 0.065 BTC. This last level, after being a major support for several months, has never been at rest. However, yesterday Ethereum It did so, confirming the downside breakout that occurred in May.
This level is undoubtedly very important and should undermine the current momentum of Ethereum. Although we may have an upward excess of up to 0.069 BitcoinA weekly close above these levels will be very complicated. These are likely to be significant resistances as Ethereum may find itself failing before returning to lower price levels. In fact, don’t forget that the weekly trend is down. Don’t be surprised by the necessary technical retracement to correct the bearish overshoot.
What about decentralized finance?
In the same way that the index analyzed last week, i.e. altcoins, today let us review decentralized finance. This FTX Index aggregates a basket of assets from a challenge. Thus, with a small sample of cryptocurrencies, we can find out the main trends of the sector, and the situation in which it finds itself. After a burst in 2021 and an all-time high in May 2021 at $17,137The index entered a range between May 2021 and May 2022 before crashing.
Returning to levels not seen since the end of 2020, decentralized finance faces challenges in scope. Relentless bear market. A few weeks rebound with a daily bullish trend, and the technical retracement order remains that does not give any bullish momentum on a weekly scale. In this context, keeping in mind that the trend should continue on its way, we can keep in mind a major key level for now: $3400. If the price reaches this level, we can favor price rejection, with the possibility of a small bullish excess.
Here we are at the end of the second crypto point of the weekend. As in the past week, the total market capitalization is still moving in its range in parallel with an Bitcoin swings back. So this allows Ethereum and altcoins to benefit from it temporarily. However, whether it is a rebound or a downturn in the cryptocurrency king of the market, sooner or later he will resume his leadership role to give direction to the rest of the market. Remember, the weekly trend is still bearish at the moment. Thus, if you do not have the opportunity to reload at the lower end of the current range, avoid buying the upper limit, on the basis of which assets can be rejected.
Is it possible to be a winner every time? Whether the bitcoin price is doing well, or going through turmoil, currency trading offers you to increase your chances of success. In fact, currency trading allows individuals access trading tool 100% algorithmic and automated. Real Trend Mechanism Follow our affiliate link to test this tool designed to adapt to market reversals and position yourself on the most dynamic crypto assets of the moment.