Cryptocurrencies manage to overcome initial resistance, what will happen next?

In this weekend’s cryptocurrency update, like every Sunday, we will analyze the market from various aspects to identify the current trend as well as the key levels to watch when establishing a key bias for the coming weeks. The first thing to remember is that 2023 is off to a green start for cryptocurrencies. But will it last for long? Without further ado, let’s jump right into TradingView.

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Will cryptocurrencies continue to grow?

The price of the total market capitalization of cryptocurrencies (Bitcoin, Ethereum and altcoins) on a daily basis.

From an overall point of view, we can maintain market capacity at the moment All-time high in 2017. He created the real support it should not split if we don’t want to see a bigger drop cryptocurrencies In the next few months of 2023.

In recent days, total capitalization of cryptocurrencies He managed to get free in the rise of a technical resistance for (red area). 775/780 billion dollars. Combined with the EMA trio, this is the first step in managing a trend reversal. After that, it is important that the price does not re-enter this technical zone downwards to avoid giving way to sellers in the market.

Initially, if cryptocurrencies manage to stay above the current zone, we can foresee a return of capitalization to $800 billion. This is a technical level that acts as support and resistance. Second, if this level is also broken to the upside and then held by buyers, it is quite possible to see the price retrace to the MA100 where it meets the $845 billion technical zone. Right now, it’s the bullish trend that should be preferred.

Are Altcoins Still Struggling?

Daily scale cryptocurrency market cap price (excluding Bitcoin and Ethereum)
Daily scale cryptocurrency market cap price (excluding Bitcoin and Ethereum)

regarding the capitalization of altcoins which makes an exception Bitcoin (BTC) and Ethereum (ETH), we can see that the price situation is less developed than what we have just analyzed. Indeed, it is still below the resistance that intersects the triple EMA, precisely EMA32. It is likely that both Ethereum and Bitcoin will need to continue to push higher if we are to see a breakout from the current technical level.

At the moment, the bias is low in capitalization, but if the price can overcome the resistance, it will allow to create a more favorable context for the rise of many altcoins. Of course, that’s assuming Bitcoin and Ethereum don’t open lower. Assuming the bullish scenario will materialize, we can set two bullish targets.

The first is $320 billion. This is former daily support that has never been tested as resistance. If the price returns to this level, it may do so to prevent buyers from looking for higher price levels. A recovery from this level will allow the price to fill the gap, looking for the MA100, where the altcoin capitalization has not returned since November.

Bitcoin’s dominance has been taking a bit of a hit in recent days

Preferential rate of Bitcoin against other cryptocurrencies on a daily basis (1D)
Preferential rate of Bitcoin against other cryptocurrencies on a daily basis (1D)

Although it was quite good in the first half of December, which hurt the rest of the market advantage of bitcoin it is now beyond the end of December. In addition, dominance has dropped since early January, allowing Ethereum as well as some altcoins to push higher. But will this dynamic continue?

The dominance is currently trading below 41.80%, a former support that is currently acting as resistance. However, trying to stay above the EMA200, we are facing a compression configuration that is likely to cause volatility in the coming days!

The level of non-loss of Bitcoin dominance is at 41.32%, as this means capital is shifting towards Ethereum and some altcoins. If the price drops and fails to react to the MA100, the price may fall more sharply. For those who choose to invest in Bitcoin and do not want to see its impact on the market diminish, the price should ideally be above the EMA200 while recovering 41.80%.

A solution to boost Ethereum, other cryptocurrencies?

Ethereum price against Bitcoin daily

As for Ethereum, things haven’t changed at all as it continues to bounce up and down in the current range we identified in the previous cryptocurrency points of the weekend. If Ethereum manages to push against Bitcoin by absorbing some of the capital, it will allow altcoins to be in a favorable position. If Ethereum can break through resistance at 0.076 BTC and altcoin capitalization overcomes resistance, the bullish momentum could leave Bitcoin on the sidelines.

However, while the range-bias to Ethereum is slightly bullish, we are not immune to the current pivot loss with the price retracing below 0.073 BTC. In this case, it will be important to react quickly and wait for a strong recovery from Bitcoin, which will outperform Ethereum. Currently, there is nothing further to report about the ETH/BTC pair.

Can DeFi cryptocurrencies recover?

Daily scale decentralized finance cryptocurrency capitalization price (1D)
Daily scale decentralized finance cryptocurrency capitalization price (1D)

To finish our analysis for this Sunday, we can briefly look at the capitalization decentralized financecalculated by TradingView, to have an idea of ​​the evolution of the sector. Since our previous analysis, the downtrend has been extended for several days, reaching 30 billion before coming back strongly and breaking the December highs.

Now the momentum for capitalization is clearly rising, indicating a very interesting situation for the sector. In this context, this may be an opportunity to take a closer look at certain decentralized finance altcoins in the short term. If the current dynamics are maintained, we can envisage the return of the course at two technical levels. On the one hand, 34.8 billion, on the other hand, 37 billion will soon be combined with MA100. As long as 32.1 billion is kept, we can maintain a high bias towards capitalization of decentralized finance.

Here we are at the end of this first cryptocurrency spot of the weekend for 2023. On the technical side of the prices, we can see a market starting in very interesting conditions. However, this should not obscure the uncertain context for 2023 regarding the impact of inflation and interest rates on markets. Although Bitcoin’s dominance started to wane, Ethereum and altcoins were able to take advantage of this and post a few percent gains. However, nothing is set yet for altcoins as a whole as capitalization is still under resistance. Over the next few days, we can maintain the bullish trend, banking on continued appreciation.

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