Bitcoin and Ethereum on hiatus, are altcoins on the sidelines? Crypto point of the weekend
As of last weekend, cryptocurrencies evolve as a whole at similar levels. As the price trend shows, Bitcoin and Ethereum are struggling to break out of certain key levels. However, if they succeed, it would allow altcoins to move in a market that is favorable for the continuation of the technical recovery that we have experienced in the last few weeks. Let’s look today at the overall situation in the cryptocurrency market and the evolution in relation to capital movements.
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Capitalization still under resistance
Currently, the price structure has changed little since last week. Although it always is bullish on the daily scalethe market is not able to get out of resistance zone identified for several weeks. So it’s really a key area of which the market must be freed to consider bullish price targets.
If the market succeeds, the goals are always the same: return to gray area a superior who was a key level last May and June. However, if the sellers continue to come in and register a bottom lower than the previous one, it will be necessary to be careful because we will have a bottom and a descending top. Maybe an opportunity for the market to go back to the upper limit of the old range ?
Altcoins Taking a Technical Break?
Besides bitcoin andEthereum which make up a non-negligible share of the market, altcoins should not be on the sidelines. For now, the latter are maintaining the dynamics they have been in for several days. The the daily trend is still bullish within the daily swing range (grey background). Last week’s remarks were largely met with new lows forming on altcoins. Right now, the goal is always the same: to break supply area daily to trigger new price targets.
Over the next week we have to hope forming a new peak on altcoins to maintain the bullish rate and demonstrate the presence of buyers. However, if the latter register a trough lower than 394 billion dollars, it will be a sign of a reversal of the structure. Moreover, this reversal level is in conjunction with previous resistance. This is the real point that altcoins have been leaning on in recent days. So this area deserves our attention. In the event that the price returns to this level, you will have to be careful.
Bitcoin is still very weak
For BTC, the observation is clear, it is still very weak and withdrawn in favor of altcoins in this summer period. The volume is a little smaller and the context macroeconomicse leaves investors confused about certain risky assets. So the bitcoin dominance chart speaks for itself with a very strong bearish momentum. Currently high, will the chart follow my original comment? Indeed, in recent weeks I have noticed a bounce bias at this level, so bitcoin has temporarily resumed the dance.
However, it is possible that the month of August will have the same dynamics as the month of July: a bitcoin getting weaker, Ethereum which is taking advantage to surpass the cryptocurrency and altcoin king that is getting excited by double-digit moves. So if the momentum of underperformance continues, we could have bitcoin dominance around 40% in the next few days/weeks. In order to be prepared for possible situations, it will be necessary to monitor the macroeconomic situation and American indices.
Ethereum continues to perform well while slowing down.
Ethereumas of last week, maintains its bullish momentum on a daily time scale. Assets are currently at a significant level supply area where it could react downward. This is where sellers need to step in to prevent a breakout of the swing pattern which, I remind you, is still bearish. If Ethereum pulls out against Bitcoin, we can establish new bullish targets, which will allow the asset, against the dollar, to do well in the event of a rise in the cryptocurrency king.
Par ETH/BTC is a very important indicator of the health of Ethereum, although currently the narrative of the shift to PoS is also having an impact. Therefore, if Ethereum loses large levels against bitcoin with a structural reversal, it will be necessary to be reactive and protect against a potential decline against the dollar. However, we are not there yet. The downside of the reversal is at the trough where the orange dashed lines are.
Asset exchange in effect?
To round out my analysis, here is a chart of the FTX Exchange Index that provides exposure to cryptocurrency exchange platform assets. The latter are relatively solid compared to bitcoin, as you must have noticed BNB. Currently, the index is under strong resistance. The goal is simple: continue this level to trigger a new bull leg.
However, even though the trend is bullish, it is possible to have a lateralization of the index finger below resistance before exploding higher. Or, if you have a fairly bearish bias, it’s entirely possible that you have a sideways index, a loss of support coupled with oblique support. In this framework, we will get a bearish structure that could lead to a bigger drop in the index.
Here we are at the end of this crypto point of the weekend ! The conclusion is clear: Ethereum continues to gain momentum, bitcoin is less and less dominating the market in favor of altcoins. However, nothing is decided yet, the market must break out of certain key resistances! Will they get there? During this month of August, and especially this week, keep an eye on the levels identified in our analysis. However, pay attention to the macroeconomic situation and the potential reaction of bitcoin, which in the event of a sharp decline will most likely bring down the rest of the market.
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