In this new crypto point of the weekend there will be lots of things to process concerning the cryptocurrency market, whether it is bias to have, the levels to monitor and analysis of asset classes that are currently outperforming the market. With a bitcoin that hit the 80 000 dollars a few hours earlier and Ethereum which is finally regaining color, the increase is perfectly visible. Last week, we highlighted that bitcoin was fast approaching its ATH while today, it is in a position above expectationswhich also demonstrates the speed at which things are changing within the market itself.
A channel exit confirmed for the capitalization of cryptocurrencies
Things have evolved positively on the total market capitalization (TOTAL1). The market has reached a upward exit of the descending channel in which it had been evolving since last April. After several technical rejections on the resistance of this Chartist figure, the rebound on the pivot allowed the market to overcome two resistances at once, now approaching $2,700 billion in capitalization!
On the graph, you can find a hypothetical scenarioin which the market would manage to maintain a bullish position, ascending lows and highs, in order to form a higher peak than bullrun having taken place in 2021. The bias is clearly bullish and has no reason to reverse, provided that bitcoin can maintain a strong enough position to avoid capitalization from a bearish reintegration under the pivot, at the confluence of the old ROB.
Altcoins regain form
It is clear that there are rather significant movements on the altcoin side for several days, certain assets are already showing performance above 100% in less than a week. With the exit from the range which is currently being carried out with a break of the resistance, the market immediately finds itself at more than 700 billion dollars (a second resistance dated last May and June).
Over the next few days, the challenge lies in the ability of this asset class to staying above resistance whose breakout is still not confirmed (pending additional signals, such as a candle close). If they succeed, nothing will stand in their way until summit of this year, around 780 billion dollars.
Of course, in the event that the market rises sharply, be attentive and preserve your capital by avoiding the use of levers too important. If the market comes to fall mightily, exposure to altcoins must be adjusted intelligently. In the current context, a fall around 660/680 billion dollars is not impossible before continuing the upward path.
The dominance of bitcoin marks a pause
Concerning the king of cryptocurrencies, the dominance is still very high despite the rejection having taken place in recent days. The oblique support testifies to the power of the uptrend for almost two years with an accentuation of the increase in recent months. Stuck around 60% dominance, altcoins benefited from this small niche to initiate an upward dynamic.
Over the coming days, for ethereum and altcoins to maintain buyer-friendly momentum, bitcoin’s dominance will need to fall, allowing other assets in the market tosuck up some of the cash. In this context, let us closely monitor the support oblique as well as the 57,75 % of dominance, two levels on which bitcoin’s dominance has a strong chance of rebounding.
Ethereum is finally coming back strong
Concerning the ETH/BTC pair, a rebound is currently underwaya dynamic which is in confluence with the movements that we had reported on BTC.D dominance. Returning above 0.038 BTC (former support), ethereum is gradually regaining strength, which explains the strong bullish leg against the dollar in recent days, allowing it to return to more than $3,000.
From now on, let’s monitor the momentum of the reboundits longevity and its ability to return towards 0.046 BTC. If ether manages to get this high, it will be a very important buy signal on altcoins.
The current context is favorable for the entire cryptocurrency market. Although it is necessary not to rush into purchasing any asset, this first rejection on BTC.D and the rebound on the ETH/BTC pair suggest a very interesting end to the year on the altcoin side. At the end of the range, this asset class has a strong chance of registering new heights in terms of capitalization over this year 2024. Especially since in the event that bitcoin is brought to consolidate temporarily, altcoins will benefit from a much greater opportunity in order to be highlighted and extend the current momentum.
