Will there be a break for cryptocurrencies?- Ethereum is on the rise almost 35% since the beginning of 2023, but the price may take a break. Altcoins are recovering, but Bitcoin seems to be attracting capital. Bearmarket not over yet? Can Altcoins Rise Again? Can Ethereum Outpace Bitcoin? Let’s analyze the graphs!
Return of the bull run? The volume of the chain plummets
With this latest strong increasecan we see the word again bull run on the networks, which had left our vocabulary since the beginning of the year 2022. Certainly, Bitcoin (BTC) is on the way in 2023, but it remains to be seen too early to talk about a return of the bull market. On Ethereum we see that transaction volumess has been in free fall since June 2021:
We can observe that the same phenomenon had already happened in 2018. In fact, volumes increased until January 2018, the date of the start of bear market for cryptocurrencies. From the beginning of January 2018 to the end of 2022, the volumes were very weak on Ethereum. In 2021, the volumes began to increase, like the price of the second capitalization of cryptocurrencies. When’euphoria is present in the cryptocurrency market, volumes increase and when fear is present and that the actors have left the ship, the volumes fall.
We see that the trend is to a large extent bearish on-chain volume, it will probably be necessary to wait for a new one uptrend on this kind of metric to find a clear upward trend in the price of Ethereum.
Back to $1,350 for Ethereum?
From the fence above $1,350Ethereum is back in the bullish momentum short term. However, we must not forget that the track is stuck in one cleaned up Between $1,000 and $1,900 :
Recently the price broke bearish trend line which had rejected the price since August 2022. This added to the change in momentum shows that the buyers are present. However, it happens very often that neckline of “W” retested by the market. It is therefore quite possible to review the price of Ethereum at $1,350 in the coming days or weeks. The price has certainly changed momentum, but the last top to go $1,674 is still not exceeded. However, in one bullish momentum clearly, the valleys and peaks rise.
Whatever happens, the price remains below weekly resistance of $1,900and below bearish trend line commenced in November 2021. As long as this is the case, the price will remain fragile and momentum will not be clearly bullish. The Ether coin still has a long way to go.
The progress is encouraging. The RSI appears to have exceeded resistance in place since November 2021. To confirm this trend, the RSI must continue to develop above this resistanceand make one support. Since the change in momentum on the field, the RSI is over bullish trend lineand as long as this is the case, the buyers have their hands on the momentum.
Ethereum: The ETH/BTC pair in indecision
That last weekwe talked about one bullish signal for the ETH/BTC pair. In fact, the pair has changed short-term momentum with the close above 0.076 BTC :
The course forms a trianglesign that lower volatility and that buyers and sellers neutralize each other. This type of construction leads to volatility, but it is difficult to say in which direction. The dynamic is bullish in the short term, but the price has still not marked a high above the previous one (0.079 BTC). The couple is stuck underneath weekly resistance at 0.08 BTC. So the two scenarios are:
- Breakout of the triangle from above: in case of a close above 0.079 BTCthe course could well break weekly resistance with volatility.
- Breakout of the triangle from below: The price can then fall intermediate support from range to 0.066 BTC.
The momentum broke bearish trend line, it may jump on it in the coming days. It will be necessary to continue to show bottoms and upward tops. To begin with a fence over 61 of RSI would allow momentum to continue. The couple is in one cleaned up for almost two years, could she finally choose a clear direction for the coming months?
Bitcoin attracts capital, danger for altcoins
Bitcoin dominance is rising and it isn’t not necessarily a good sign for altcoins :
The price returned to the level of institutional bias (EMA 9/EMA 18). Bitcoin dominance is increasing, the king of cryptocurrencies attracts capital. IN this article, it explained why altcoins could suffer in the event of an increase in Bitcoin dominance. If the price of Bitcoin rises, so will altcoins, but they will be less efficient than Bitcoin. If the price of Bitcoin falls, altcoins could fall more sharply. In light of the momentum on Bitcoin dominance, the price is headed towards 44% resistance.
The progress is bullish, the valleys and peaks rise. RSI is also moving above bullish trend line.
Capitalization of altcoins changes the dynamic
Thanks to this upward movement, the capitalization of altcoins changes the dynamic :
Altcoin capitalization rises at the level of aid to 440 billion dollars and fence over 495 billion dollars. Thanks to this closure, the dynamic is back bullish short term. Note, a retest of the neckline on the “W” is possible. This would test the resistance that has become aid to 480 billion dollars.
Momentum is picking up again increase. It looks like the RSI has managed to break out resistancewe will have to continue to develop over this zone.
If buyers have appeared recently in the cryptocurrency market, the bear market is not necessarily over. As we have seen, the volume of transactions on Ethereum is in free fall, it will be necessary to regain a bullish momentum to see the presence of new participants on Ethereum. Ethereum could take a break and get back to the level of the “W” neckline at $1,350. The momentum is changing in the short term, but the price remains below the weekly resistance at $1,900 and below the downtrend. Against Bitcoin, Ethereum has the opportunity to definitively break out of the range, but Bitcoin has not said its last word. In fact, the dominance of Bitcoin is increasing, and this does not necessarily bode well for altcoins. Despite everything, altcoins are starting to rise again and the market cap is back above the important resistance of $480 billion.
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