Donald Trump's inauguration will take place in a few hours. Catalyst for the cryptocurrency market to witness a bullish explosion in all altcoins? Sell the news who will lead the crypto market to take the bearish path? There is no doubt that this political event will have a concrete impact, but to what extent? On the eve of the inauguration, let's see what assessment we should adopt on the market halfway through January and what we should hope for in the coming weeks.
The return to the upper limit of the range
Since the crypto update was conducted last Sunday, there has not been much change in the total market capitalization. Always in this lateralization phasethe market now finds itself at the upper limit of the range. During the coming days, particularly in the context of the inauguration of the president-elect, let's carefully monitor the $3.7 trillion zone.
For the market to be able to extend its upward momentum, the price will need to reach a exit from rangewhich will allow it to quietly take the direction of 4,000 billion dollars. The current bias is bullish in the long term, the $3 trillion zone is strongly defended. The bias will not move as long as the technical zone, shown in green, operates as support.
As for altcoins, we will have the opportunity to look at them later next weekpost-inauguration, with the volatility that will take place in the crypto market. For the moment, there has not been the formation of a new ATH. The 1,100 billion dollars act as resistance, it will be necessary to be patient while waiting for an exit from the current technical configuration to see things more clearly.
The dominance of the king of cryptocurrencies remains stable
The king of cryptocurrencies continues to maintain an upward dynamic on the weekly time frame. Despite a weakening of the price on the 1D/H4 time unit, the last few days demonstrate that bitcoin manages to maintain a strong position towards the entire crypto market.
Getting closer to 60% againit will be appropriate to carefully follow Trump's speech and the actions that can be taken on bitcoin, particularly in the hypothetical creation of a state strategic reserve. The bias being bullish, this partly explains the difficulties that altcoins have been facing in recent weeks.
-For there to be a change in dynamics in the crypto market, BTC.D will have to weaken and return permanently below 50%. When the price got closer to 54.40%, this allowed many altcoins to take the bullish path. Over the next few weeks, carefully monitor the direction the chart takes. In the event of a fall, keep a particular eye on the area around 53% dominance (support horizontal + confluence EMA200 et MA100).
A complex period for Ethereum
Bad times for ethereum, currently facing strong downward momentum against bitcoin since 861 days (last peak around 0.09 BTC. Unable to register a weekly trend reversal, the launch of the memecoin officially the Donald Trump propelled SOL to new highs, Bitcoin preserves $100,000, but Ethereum gradually falls, now approaching $3,200.
Currently on a long-standing pivot since 2017, will we have the long-awaited reaction of recent years on the ETH/BTC pair? This pivot around 0.030 BTC could mark the famous low point of this cycle for the pair. If the fall continues, it will become very worrying for Ethereum, opening the way to 0.02 BTC for one ETH. This notably impacts the capitalization of the DeFi sector, in the inability to register peaksin the same way as TOTAL3 (capitalization of all altcoins).
However, it should be noted that a favorable regulation in the United States could propel Ethereum into a new dimension, particularly with the integration of staking for Spot Ether ETFs. For altcoins to have the wind in their sails, there is no doubt that there will have to be very significant changes in current market dynamics : upward recovery of the ETH/BTC pair (therefore strong recovery of the asset against the dollar), fall of BTC.D. So many conditions for altcoins to reach new highs.
