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

In this weekend’s new crypto point, as every Sunday, we will focus on the overall situation of the Bitcoin and cryptocurrency market by determining the bias to be, the technical thresholds to watch and what happened on the class in the last 7 days. This will allow us to take a step back from our previous analysis by asking ourselves whether the scenarios that were established have been confirmed or not.

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Cryptocurrencies touch 1000 billion capital letters

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

Last week we discussed the resumption of technical resistance at $780 billion (not shown here), which was the first step in an upward trend reversal. After managing to recover the $800 billion and then the $845 billion resistance in conjunction with the MA100, the buyers managed to operate a short squeeze resulting in a very strong bullish move.

The price of the cryptocurrency capitalization reintegrated the previous range by also regaining the pivot level that was built from September to October 2022, paving the way for a return to the EMA200, which the price had not found since last April! Although this increase is very interesting, it should not cause you to lower your guard against the financial markets.

We are at a technical confluence, which is the daily EMA200, which is located just above a technical resistance of $980 billion. However, it’s important not to hastily and mindlessly FOMO current levels, even though they may be, depending on your investment thesis, quite attractive in the long term. Consolidation with withdrawal is possible, but how far? In order not to break the momentum, the capitalization of cryptocurrencies may reach $850 billion to confirm the bullish exit from the range in which prices have developed since November.

Altcoins Late?

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

Regarding the capitalization of altcoins (excluding the capitalization of Bitcoin and Ethereum), we can see that the price is lagging, as they currently have not reached the daily EMA 200. Currently, altcoins have broken free from a technical confluence, there is the MA 100 and the resistance level at $332 billion, where the price continued to be rejected downwards in November and December.

Currently, the price is below the $350 billion support at which the price was held from June to October last year. At the moment, as the daily momentum is bullish, there is no doubt that a re-entry of this support will open the way for a more sustained rise in altcoins, which could take advantage of it to return to the 200 EMA, which currently coincides with a pivot zone of $375 billion.

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

A Bitcoin that once again demonstrates its strength against other cryptocurrencies

Course of Bitcoin dominance over other cryptocurrencies on a daily scale (1D)
Course of Bitcoin dominance over other cryptocurrencies on a daily scale (1D)

Regarding Bitcoin dominance, what has happened in recent days is very interesting, as the bearish scenario took place before giving way to the realization of an upward trend in the price of dominance. As agreed, the price has returned to MA100, which has triggered a very strong start for Ethereum and altcoins. A large number of cryptocurrencies registered double-digit increases. The liquidity that was going to Bitcoin gradually shifted to the rest of the market.

However, a very strong recovery took place in Bitcoin, which decided to recover as the market leader. Although altcoin prices have been pushed up, it hasn’t stopped the king of cryptocurrencies from soaking up a larger chunk of capital, giving him the chance to return to $21,000 in seconds.

Coming to 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 pullback, which is necessary if we want a continued rise in the market.

Ethereum is still moving in the same technical zone

Ethereum price against Bitcoin on the 3D time unit

Regarding the situation of Ethereum against Bitcoin, we can see that the price is still moving in the upper zone of the range that has been building since April 2021. Currently, the price is not able to overcome the upper limit of the range of 0 .0789 BTC, especially since another resistance at 0.0769BTC is located just below. If Ethereum manages to overcome this double resistance, the price is likely to go towards 0.085BTC.

That’s kind of the current problem for buyers hoping to see a sharp increase in price. An upward breakout of the range would be an opportunity for Ethereum to lead the market and surpass Bitcoin. This would be an ideal background for altcoins, which react more positively to an increase in Ethereum compared to increases in the king of cryptocurrencies. However, if the price fails to do so and loses its 3D trend with its trio of EMAs, the way would be open for a return to the MA100 and an outperformance of the asset relative to Bitcoin.

Decentralized economy in good shape

Decentralized Finance Cryptocurrency Capitalization Price on Daily Scale (1D)
Decentralized Finance Cryptocurrency Capitalization Price on Daily Scale (1D)

In terms of the capitalization of DeFi cryptocurrencies, the goals mentioned last week have largely been achieved since the price has returned to the range in which it developed between September and November 2022. By reacting to a pivot zone of $44 billion, the price now has a big goal: to stay within the range by staying above the lower limit of $40 billion.

If this goal is reached, it would be a sign of strength in DeFi assets, which should alert investors to the need to monitor cryptocurrencies operating in this sector. The second problem is a resumption of the pivot zone that we have mentioned. If the price breaks this zone upwards, it could move towards the EMA 200, where the upper limit of the range is at $48 billion.

Here we are at the end of this technical analysis. This week has been very emotional and the one that follows risks being in continuity as the market has to choose between on the one hand the continuity of a bullish momentum favored by a rather weak dollar or on the other hand , a trend reversal that could be set up by marking a local top at current levels. What is certain is that the rise we have just experienced is strong, and for it to continue, a setback must be marked.

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