Bitcoin Breakout Failure Sends Cryptocurrency Market South

Despite the positive momentum of the classic financial market, the bulls have again failed to sustainably take the key cryptocurrency bitcoin (BTC) above the resistance at $24,291. The price of bitcoin reached a new all-time high of $24,663 last weekend before the bears retaliated amid weak trading. As a result, bitcoin, and with it the entire crypto market, again corrected south. Bitcoin’s price consolidation has also led to a further decline in the value of the second largest cryptocurrency, Ethereum (ETH).

Despite consolidation: the market as a whole can still stabilize

While the total market capitalization has also been adjusted by seven percentage points to $1.03 trillion, it may remain above the psychologically important $1 trillion mark for now. After a steady loss of market power over the past two months of trading, Bitcoin dominance has recovered somewhat over the past two trading days and increased to 42.38%. Risk-sensitive investors took advantage of the recent price correction to rise to appropriate support levels on Tuesday morning to enter new long positions.

Despite recent profit taking, most of the top 100 cryptocurrencies are showing weekly price increases. Leading the long list of weekly winners are Ethereum Classic (ETC) and Bitcoin Gold (BTG). Both cryptocurrencies appear to benefit from Ethereum’s upcoming transition from proof of work to proof of stake.

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Global Politics May Affect Cryptocurrency Prices

House Speaker Nancy Pelosi’s forthcoming visit to Taiwan appears to be of particular importance for price movements in international financial markets. China’s vaguely worded countermeasures prompted cautious investor behavior earlier this week. Stock indices in Asia, Europe, and the US have declined over the past 24 hours. You can read here which dates for bitcoin and the crypto market are likely to be relevant in the coming trading days.

Total market capitalization based on shown Cryptocap values.

Price evolution of the top 10 altcoins

  • The value of all top 10 altcoins can increase on a weekly basis.
  • The list of weekly winners is led by Pokadot (DOT) with a price increase of 16%, followed by Binance Coin (BNB) with a value increase of 13% and returned Polygon (MATIC) with 12%.
  • Solana (SOL) and Ripple (XRP) were also able to increase their value by double digits, each with a nice 10% price increase.
  • With a nine percent rise in value, Ethereum could also rise significantly this week than Bitcoin with a significant seven percent price increase.
  • Cardano (ADA), with a price increase of just four percent, is in last place. The Cardano “Vasil” hard fork, once again delayed, was supposed to encourage investors to exit in the short term.

Top 10 Stability

  • The price of bitcoin is holding up well week after week despite the recent correction from the $22,600 support level.
  • The previous week’s bullish price movement also drove the value of the 10 remaining altcoins up.
  • As long as the price of Bitcoin stabilizes above $21,600 in the coming trading days, the recent uptrend will remain in place.
  • This positive trend is expected to continue for the top 10 altcoins as well.
  • The ranking of the ten largest cryptocurrencies this week has changed. Polygon (MATIC) managed to return to the top 10, once again displacing Tron (TRX) from 10th place.

Winners and losers of the week

  • After a weak previous week, the vast majority of the top 100 altcoins have finally managed to recover and rise in price over the past seven trading days.
  • Despite the increase in profit taking in recent days, the total market capitalization for the moment maintains its position above $1 trillion.
  • About 80 of the top 100 altcoins have gained in price compared to the previous week. Over 40 altcoins are jumping north to double digits.
  • The long list of weekly winners is led by Ethereum’s little brother, Ethereum Classic, which saw a 58% price increase.
  • Dropbox’s blockchain-based rival Filecoin (FIL) has also been bullish lately, increasing its value by 56%. Here, increased short liquidation caused a parabolic rise in short-term prices.

The inevitable transition to Ethereum leads to the movement of some cryptocurrencies

  • Bitcoin Gold also increases significantly northward with a price increase of 53%. However, the sustainability of this increase must be questioned. Neither Ethereum Classic nor Bitcoin Gold is likely to be a viable alternative to Ethereum mining for large mining pools.
  • With a 46% price increase, the DeFi project Lido DAO (LDO), which specializes in Ethereum, is also growing significantly northward. Investors are enjoying heightened interest in the Ethereum “merger”.
  • Surprisingly, Celsius Network (CEL) also grew by 39%. Despite the insolvency of the central lending platform, the price of CEL could recover significantly.
  • The list of the most profitable for the week is completed by the Chiliz (CHZ) token. Chiliz invests in the digital marketing company of FC Barcelona. Investors respect this investment and let the CHZ soar 36% weekly.
  • A manageable list of losers is headed by one of last week’s few winners. Tenset (10Set) is currently down 20% after a strong previous week.
  • ECOMI (IMO) with a 6% price drop and Radix (XRD) with a 3% price drop also tend to be lighter.
  • Investors should continue to use existing profits when they reach key resistance levels. Until Bitcoin and Ethereum can sustainably stabilize above high resistance levels, the recovery remains on fragile ground.

Disclaimer: The price estimates provided on this page are not a recommendation to buy or sell. This is just an analyst’s estimate.

Chart images were created using TradingView installed.

USD/EUR exchange rate at the time of writing: EUR 0.97.

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