Bitcoin Hesitation Continues – Yesterday was an eventful day for the financial markets and for cryptocurrencies. The drop in US inflation had an immediate effect on Bitcoin as the price returned to $70,000. However, despite the fact that the Fed then decided to keep its rates unchanged, the price of Bitcoin returned to the $67,000 level. Therefore, buyers must defend $67,000 to avoid further declines to $64,500. In this context of uncertainty, what should we expect from altcoins? Ethereum (ETH) is down nearly 10% for the week and Dogecoin (DOGE) is down nearly 15% over the same period. Let’s take stock of the altcoin situation with technical analysis!
Altcoin market capitalization needs to maintain $1.1 trillion
If we are interested in altcoin capitalizationwe notice that he draws a bullish momentum from the beginning of 2023. Only after returning to shorts charging area (0.618-0.786 Fibonacci retracement), taken over by vendors. In fact, the fix brought the case below the value 1 trillion dollars. And since then, buyers have a price advantage :
However, the price locked at the level resistance at $1.2 trillion. From now on, the price evolves around $1.1 trillion in supportlevel institutional bias (EMA 9/EMA 18) bullish. Here’s what we’d like to see on the course:
- AND maintaining $1.1 trillion in support
- AND bounce towards resistance to 1.2 trillion dollars
- AND resistance broken at $1.2 trillion and the fence behind them last peak at $1.27 trillion. Such a closure would likely allow the price to return final high of 2021.
On the other hand, if this scenario is destroyed by sellers and $1.1 trillion in support recedes, return to 950 billion dollars is possible. RSI must bounce and keep growing 60 so buyers can regain momentum.
Towards a New Peak of Bitcoin Dominance?
Chart bitcoin dominance allows you to see if the capital is going to bitcoin or altcoins. However, from the end of 2022 capital is largely oriented towards the king of cryptocurrencies. The price is indeed showing bullish lows and highs. And as long as that’s the case, altcoins will have a hard time expressing themselvesand they will be heavily affected by BTC’s downward movement.
The course of dominance recently he bounced back once again on support around 54%. PUSH the primary trend is bullish. Therefore, the probabilities are oriented towards a new increase toward resistance to 58%. In case of closing outside last peak at 57%Bitcoin’s dominance would continue on bullish momentum. We’ll have to wait until dominance is bearish so altcoins can benefit from capital rotation.
The RSI is developing outside bearish trend line. Development above 65 would show that buyers are powerful.
Rebound to $3,500 or return to $3,100 for altcoin leader
The price of Ethereum (ETH) has increased again blocked level psychology round number to $4,000. After rejection on 4,000 dollarsthe course is back to support of $3,500. This also applies to location 9 and 18 moving averages trending up :
In the event that buyers appear, the price could return to the level resistance at $4,000. Then it will be necessary break this resistance AND close above $4,100 find last year’s highs. If the price falls below support of $3,500could respond level additional support at $3,100. Actually at the moment buyers have an advantage on ETH.
To make RSI clear in the hands of buyerswill need to be developed above 64. At the moment, the momentum indicator remains brittle.
New rejection on the ETH/BTC pair
Compared to the dollar, the second capitalization of cryptocurrencies is relatively solid. Actually, the trend remains bullishand escape $4,000 could bring ETH back to level the last ATH of 2021. However, when it comes to bitcoins, the situation is completely different. PUSH the trend is bearish from the end of 2022. And despite the implementation of the ETF, Ethereum remains fragile against the king of cryptocurrencies :
We no longer count how many times the price of the ETH/BTC pair has changed reject at the bearish trendline level. As long as the price is below this trendline, it will stay febrile. The price is close to the support, buyers potentially have a new opportunity to break the bearish trend line.
RSI is on its side solid. The momentum indicator recorded a bullish divergenceand now it will be necessary to close further 63 so buyers can keep pace.
XRP remains bullish weekly
XRP price is pulling bullish lows and highs on the other side bearish trend line. At the moment, and until proven otherwise, they are these buyers who have control over price. However, XRP is in process slip below the $0.53 level :
If the price continues block for $0.53 and against bearish institutional biasXRP could end up at support at $0.42. On the other hand, if the buyer is pushing a $0.53 is used as supportthe course could join the resistance at $0.65. Stay in bullish momentumXRP must maintain support at $0.42and must surpassing the last recorded high of $0.94. RSI is showing falling lows and highs since early 2024. It will be necessary regain upward momentum so buyers may have a momentum advantage.
Ethereum is back at the $3,500 support level. It will be necessary to get the sellers to pull back at the $4,000 level to continue the uptrend and return to recent all-time highs. The ETH/BTC pair has once again rejected the bearish trendline, showing that ETH remains fragile against BTC.
Altcoins will have to wait to return to the altseason like in 2021. Indeed, the dominance remains bullish and capital is moving towards Bitcoin. The altcoin capitalization needs to maintain support at $1.1 trillion to avoid further declines to $950 billion. Meanwhile, XRP is still bullish on a weekly basis. Despite this bullish momentum, if the price continues to block at $0.53, a return to the $0.42 support is possible. Cryptocurrency enthusiasts need to be patient as we are potentially only in the middle of a bull cycle.