Bitcoin (BTC) at the $30,000 Gate, Will Altcoins Follow the Crypto King?

Since last week, the situation has especially developed with a powerful rise in prices for cryptocurrencies. Bitcoin is approaching $30,000, Ethereum is approaching $2,000, but still, many altcoins have not been able to show strong growth after falling last week. This is indicative of the desire for capital by the two most important cryptocurrencies in the market. Will this situation continue? We will try to answer this.

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Cryptocurrencies under threat

The price of the total market capitalization of cryptocurrencies in a three-dimensional unit of time (Bitcoin, Ethereum and altcoins).

Last week we mentioned the fact that the crypto market was at a very interesting technical level and that it had to bounce back to avoid its lows at the end of 2022. The macroeconomic context has changed with the bankruptcy of Silicon Valley Bank. probably had an impact on the cryptocurrency market, given the massive price increase.

Currently, the total market capitalization is at the main level, which, after working as support in 2021, is now acting as resistance. Can the course break free? If this happens, the uptrend could be powerful as we have an exit from the range that the price has been in for almost a year. However, until proven otherwise, the current level is resistance, especially as it sits just above the EMA200 in 3D time.

If the price fails to break it, the invalidation will be obvious to buyers and will likely cause the price to initially bounce back to its $920 billion benchmark. If the price manages to overcome its EMA200, the first target will be the $1,300 billion technical level.

Cryptocurrency market cap price on a daily time scale in 3D (excluding Bitcoin and Ethereum)Cryptocurrency market cap price on a daily time scale in 3D (excluding Bitcoin and Ethereum)

For altcoins, the situation is especially different here, as the growth in market capitalization was largely driven by the recovery of bitcoin and ethereum. The latter are still under resistance despite the MA100 recovery. Indeed, they have not yet freed themselves from resistance, which is estimated at 400 billion dollars.

If the altcoins manage to overcome this, the price is likely to return to the upper resistance, which is at $440 billion, from which the price deviated during the summer of 2022. For now, they haven’t really moved to altcoins, which have benefited slightly from the rise of bitcoin and ethereum.

Therefore, since purchasing power is not very important, there is no doubt that a downward reversal of Bitcoin and Ethereum will rather be a bad sign for altcoins. Indeed, this could see the price return to the early March low of just over $320 billion.

Bitcoin is still the king of the market

The rate of dominance of bitcoin over other cryptocurrencies in a 3D unit of timeThe rate of dominance of bitcoin over other cryptocurrencies in a 3D unit of time

As for the price of Bitcoin dominance, last week’s analysis was taken on the wrong foot as the price, despite the just-confirmed downtrend, rebounded strongly to stay above its support at 43.10/43.20%. Freed from resistance at the EMA200 confluence we’ve been talking about for weeks, dominance has exploded upward as it is now under resistance at 46.85%.

Clearly, there is still scope for a dominance push to the upper end of the 48.25% range in the event that Bitcoin rises to $30,000. However, as the asset is at the top of its range, it is possible that the uptrend will slow down over the next few weeks, allowing for a strong takeover of ethereum and altcoins to trigger bullish momentum.

Ethereum is at a key moment

Ethereum price in relation to bitcoin in a three-dimensional unit of timeEthereum price in relation to bitcoin in a three-dimensional unit of time

The situation with Ethereum is very interesting. With the rise of the king of cryptocurrencies, which absorbed most of the capital, the price of ethereum lost strength, falling below its MA100 to head towards a wide range reversal in which the price has been developing since April 2021. This reversal is in confluence with EMA200, due to the many reactions that the price has acted at this level, there is no doubt about the importance of this zone.

Ethereum should bounce back now or never. Indeed, if Ethereum fails to respond to this pivot zone, the price will operate with the same dynamics as in May 2022, falling sharply to the lower technical levels. Therefore, it will be necessary to keep an eye on the close of this weekend, as keeping the price above this level will be a very positive factor for Ethereum. Indeed, this will allow it to bounce in the direction of the MA100 just below resistance, which must be broken on the upside in order to register true bullish momentum.

DeFi cryptocurrencies are in an interesting situation

Decentralized finance cryptocurrency capitalization price in 3D unit of timeDecentralized finance cryptocurrency capitalization price in 3D unit of time

To complete this analysis, as always, we will look at the capitalization of decentralized finance, which is working quite well at the moment. Last week we discussed the need for the price to stay above the MA100, which is at the confluence with the pivot zone. This is done for a capitalization that, after a significant $37 billion wick, has managed to keep a 3D unit time close.

The price is currently in the process of breaking through the resistance at $48.75 billion, which we have already mentioned on numerous occasions. If the price manages to reach acceptance above this level, the next few days will be very interesting and could see continued bullish momentum. In this context, a capitalization of $60 billion can be achieved. However, much of this will depend on whether Ethereum can bounce back from the reversal we discussed earlier.

Here we come to the end of this weekend’s cryptopoint. As you have seen, Bitcoin has been dominating the market for over a week now, and it is possible that this trend could continue for some more time. However, given Bitcoin dominance at the top of the range and Ethereum in its reversal, we could see liquidity rotate in favor of altcoins provided that Bitcoin does not move lower. This week will be important and marked by the Fed’s decision on interest rates.

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