2024-01-14 17:00:00
After the approval of spot Bitcoin ETFs which reached a new volume record of $4.6 billion, the king of cryptocurrencies fell several thousand dollars to $41,500, many altcoins followed. However, the market is fragmented since certain assets have not been impacted by continuing their upward momentum. In this new crypto update of the weekend, we will take stock of the market for mid-January by identifying the levels to watch and the bias to have. Without further ado, let’s head to TradingView!
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The total capitalization of the cryptocurrency market continues to struggle with resistance
Price of the total capitalization of the cryptocurrency market against the dollar on the daily time unit (1D)
Since the week, the situation hasn’t really evolved on the total capitalization of the cryptocurrency market, which will lead us not to dwell on this part of the article. On a daily scale, it is clear that the course is still in difficulty on the resistance of 1645 billion dollars.
Currently finding himself in pullback after a short-term breakout of the resistance zone, will the market be able to hold its ground or will it fail with a downward reintegration? For the moment, the technical area managing to holdnext week will be particularly important. Currently in a period of uncertainty, it is appropriate to be patient andwait for direction what will the capitalization of the market take in order to have a more precise idea of the dynamics that we will experience by the end of January.
Concerning the capitalization of altcoins, the situation being identical to last week’s analysis with an oscillation between 450 and 500 billion dollars, we will not carry no analysis on this asset class whose tendency is always bullish on a weekly scale.
Top local for the dominance of the king of cryptocurrencies?
Price of the dominance of the king of cryptocurrencies on a weekly scale (1W)
As the price action carried the dominance of the king of cryptocurrencies into a bullish momentumthe least we can say is that the reversal of the trend is particularly powerfulthe entire increase having been erased in the space of a few days. However, we find ourselves at a key moment since bitcoin is about to make its first weekly close below 51.45%.
If it closes this way, the signs of a downtrend confirmation will be more importantleading us to believe that the asset could come and get the upper limit of the old range (yellow level) at 48.3% dominance. Thus, the weekly close for this weekend will be at watch carefully since she could determine the dynamics that we will know over the coming weeks, particularly in terms of the balance of power between ETH/BTC, which we will see without further delay since there has been a change on this pair.
Ethereum is finally coming back strong
Price of Ethereum against Bitcoin on a weekly scale (1W)
While the trend was particularly bearish for many months, it is clear that ethereum has registered a powerful bullish candle following the approval of the Spot Bitcoin ETF. Regaining the 0,054BTC, a weekly key level, ether is now trading below the key threshold at 0.06BTC. The challenge for the coming weeks is the resumption of this key level, which would open the way to a superformance of assets against the king of cryptocurrencies.
What is also possible is a lateralization of the ETH/BTC pair below current resistance before extending the bullish momentum to higher levels. For the moment, the capitalization of DeFi altcoins has not really reacted to this price movement on the part of Ethereum, which will lead us to talk about it next week in our next weekend crypto update.
In the current state of the market, it is clear that the approval of the Bitcoin Spot ETF redistribute the cards in terms of trends within the crypto market. Ethereum seems to benefit from this context of speculation of a potential ETF to regain strength against the king of cryptocurrencies. This trend having allowed altcoins to defend the 450 billion dollarsthe total capitalization of the market must nevertheless regain in a fair manner the resistance zone for preserve the upward momentum. For this second half of January, the signs point, despite the recent decline, to a continuation of the rise of altcoins. First of all, let’s monitor the fence this weekend and let’s take precautions over the coming week and the potential impact that the Bitcoin Spot ETF could have in terms of volatility.
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