Bitcoin and cryptocurrencies are green, it is urgent to be careful!

In this new crypto spot of the weekend, like every Sunday, we’ll focus on the general state of Bitcoin and the crypto market, identifying the biases to have, the technical limits to watch, and what’s been happening in class over the past 7 days. This will allow us to step back from our previous analysis by asking ourselves whether the scenarios that have been constructed are confirmed or not.

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Cryptocurrencies touch the 1000 billion market capitalization mark

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

Last week we discussed the recovery of technical resistance at the $780 billion level (not shown here) which was the first stage of an uptrend reversal. Buyers managed to recover the $800 billion and then the 845 billion resistance that connected with the MA100, and managed a short squeeze that resulted in a very strong bullish move.

The price of the cryptocurrency capitalization re-integrated the previous range, also retrieving the pivot level established from September to October 2022, which paved the way for a return to the EMA200, which the price did not find. Since last April! Although this upswing is very interesting, it should not cause you to lower your guard against the financial markets.

We are on a technical confluence with the daily EMA200 just above the $980 billion technical resistance. However, it’s important not to rush into current levels of FOMO, even though they can be quite attractive in the long run, depending on your investment thesis. Consolidation with a pullback is possible, but for how long? In order not to disrupt the dynamics, the capitalization of cryptocurrencies may return to $850 billion to confirm the bullish exit from the range in which prices have developed since November.

Altcoins Late?

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

As for the capitalization of altcoins (excluding the capitalization of Bitcoin and Ethereum), we can see that the price is lagging as it has not yet reached the daily EMA 200. Currently, the altcoins have escaped a technical confluence with MA 100 and the $332 billion resistance level, and this price continued to decline downwards in November and December.

Currently, the price is below the support level of $350 billion, which was held last June-October. Currently, as the daily momentum is bullish, there is no doubt that the re-entry of this support will pave the way for a more sustained rally for altcoins that can use this to get back to the 200 EMA currently in place. A merger with a pivot zone worth $375 billion.

Here are two technical levels that altcoins will need to retrace if they want to get back to the resistance represented in red at $400 billion. Despite the strong momentum we have experienced in recent days, no decision has been made yet. The ideal scenario for altcoins to avoid a bearish reintegration with the manifestation of sellers would be to keep the price above $332 billion in order not to fall below MA 100.

Bitcoin, which once again demonstrated its strength against other cryptocurrencies

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

As for Bitcoin dominance, what happened in the last few days is very interesting because the bearish scenario happened before the dominance price allowed an uptrend to materialize. As agreed, the price turned to MA100, which led to a very strong start for Ethereum and altcoins. Many cryptocurrencies have recorded double-digit growth. The liquidity that went to Bitcoin gradually flowed to the rest of the market.

However, a very strong rebound took place in Bitcoin, which decided to recover as the market leader. Although the prices of altcoins rose, this did not stop the king of cryptocurrencies from absorbing a larger investment, giving him the chance to return to $ 21,000 in a matter of seconds. A few days.

Coming to the core level, it is possible to witness the decline of Bitcoin’s dominance for a while. This would be an opportunity for the cryptocurrency market to take a break to get a technical pullback, which is necessary if we want a sustained rise in the market.

Ethereum is still moving in the same technical zone

Ethereum price against Bitcoin in 3D time unit

As for Ethereum versus Bitcoin, we can see that the price is still moving in the upper zone of the range established since April 2021. At the moment, the price cannot cross the upper limit of the 0.0789 range. BTC, especially since the second resistance at 0.0769BTC is located just below. If Ethereum can overcome this double resistance, the price will probably head towards 0.085BTC.

This is a pressing issue for buyers hoping to see strong price growth. A move up the range would be an opportunity for Ethereum to lead the market and outperform Bitcoin. This would be an ideal backdrop for altcoins, which have reacted more positively to the rise of Ethereum than the king of cryptocurrencies. However, if the price fails to do so and loses the 3D trend with the triple EMA, the way is open for a return to the MA100 and the asset’s outperformance against Bitcoin.

Decentralized finance in great shape

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

As for the capitalization of DeFi cryptocurrencies, the stated goals were largely achieved last week as the price returned to the range it developed between September and November 2022. Having reacted to a $44 billion pivot zone, the price is now at fundamental value. The goal: to stay in range by staying above the $40 billion floor.

If this target is achieved, it would be a sign of strength in DeFi assets, which should alert investors to the need to monitor cryptocurrencies operating in the sector. The second issue is the restoration of the pivot zone that we mentioned. If the price breaks above this zone, it can move towards the EMA 200, where the upper limit of the range is $48 billion.

Here we are at the end of this technical analysis. This week has been very emotional and the week that will follow the risks of continuity, the market will have to choose between, on the one hand, the continuation of the upward momentum favored by a rather weak dollar, or, on the other hand, a reversal of the trend that can be established by marking a local peak at current levels. What is certain is that the uptrend we have just experienced is strong, and a pullback must be noted for it to continue.

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