In this new crypto update of the weekend, let’s take a look at the bullish momentum currently evident in many altcoins. Are we on the verge of a series of new highs for many assets? With the slowdown of the king of cryptocurrenciesthis opens the way to a transfer of liquidity, which is reflected rather well in the market performance during these last days.
The cryptocurrency market positions itself in price discovery
At the moment, the current market dynamics are clearly in the extension of the scenario mentioned in last week’s analysis. Clearly crossing the technical zone at 3,000 billion dollars, the market is currently in a price discovery phase. Until proven otherwise, the bias is bullish and will continue to evolve in this dynamic as long as there is no return of the price below previous resistances.
Thus, the current objective, in the event of buyer liquidation, is to stay at more than $3,000 billionwhich will allow the market to maintain a a solid moment which will lead to new heights. After the period of contraction which has formed since the beginning of 2024 below the resistance zone, the current volatility is in some ways the logical sequence that we could expect.
Is the hour of glory coming for altcoins?
This year 2024 was overall dominated by the rise of bitcoin which is only a few thousand dollars from the symbolic threshold of 100 000 dollars. However, only a few altcoins have managed to form new heightsleaving aside the selling pressure, investor concern and the increase in token issuance with selling pressure which was progressively stronger.
After passing 780 billion dollars without much difficulty, the capitalization of altcoins finds itself under a crucial area around 950 billion dollars! Establishing itself as a resistance zone during the end of 2021 (peak of the bullrun), the market was not there not returned for almost three years! But then, what does this mean? For altcoins to enter a new expansion phasethey will have to succeed in extricating themselves from this resistance zone as well as the ATH which is located at $1.13 trillion.
Although the market is in an upward trend, the road is still long for this asset class which currently maintains a underperforming position against bitcoin. To hope for a rotation of capital, it will be appropriate to have our eyes fixed on the evolution of its dominance at the end of 2024. However, with the arrival of institutional investors and ETFs, should we hope for such significant changes than in 2021 vis-à-vis BTC.D? Still around 60%, the situation and scenarios mentioned are identical to the analysis issued at the beginning of November in this area.
Is the rebound of the prince of cryptocurrencies unexpected on the ETH/BTC pair?
Concerning the ETH/BTC pair, with theconsiderable increase in bitcoin against the dollar in comparison to retard having been taken by ethereum, the fall is explained rather quickly. We noted last week the golden level of the Fibonacci retracement around 0.030BTC. Approaching this level at full speed, the rebound is imminent for ethereum? With a bearish trend that has lasted for several years, the number of people questioning the bullish thesis on the asset is increasing. sharp increase.
However, following the increase that the king of cryptocurrencies has experienced in recent weeks and the bearish position of the majority of investors on social networks about ethereum, the question of a trend reversal within the next few days arises strongly. With an ecosystem that still maintains strong on-chain activity and the return of a deflation situation, can we hope for a ATH of the asset against the dollar by the end of 2024? Closely monitor the dynamics of the ETH/BTC pair as well as BTC.D. If changes take place on the two pairs in parallel, it will be a signe favorable to a favorable trend development.
Is the DeFi sector growing again?
In any case, on the side of altcoins relating to DeFithese last few weeks have been particularly interesting. With a dynamic similar to TOTAL3 (total capitalization of altcoins), we can see the crossing an oblique resistanceconfluence with a horizontal resistance threshold around $85 billion. After several weeks of contraction, the volatility makes a comeback for altcoins dedicated to this sector.
During the coming weeks, we will monitor with particular attention the resistances which are at 120 billion and 179 billion dollars. We can see that altcoins in this sector have a margin of progress which is greater than the price of TOTAL3which demonstrates a certain underperformance of DeFi utility tokens compared to other narratives such as memecoins or artificial intelligence. However, with the price in a favorable upward position, the current bias is bullish and will remain so until there is a downward re-entry below $85 billion.
Concretely, the cryptocurrency market is in a very interesting situationpunctuated by a general rise in bitcoin and altcoins. However, it is clear that the margins of progress are different and that BTC.D is still positioned in a outperformance phase. Will we have the long-awaited rebound on Ethereum? If it occurs, it will bring a wave of liquidity in favor of the decentralized finance sectorwhich will probably wake up many active people, still asleep to this day compared to other narratives such as we had seen previously.
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