Slow Bitcoin and Ethereum, Cryptocurrencies Below Key Levels – Crypto Weekend Update



Since last weekend, the cryptocurrency market reacted favorably to weaker figures vis-à-vis inflation. Indices continued to drive higher, Ethereum returned to $2,000, but bitcoin is actually showing a lack of momentum. What will be next for the second half of August? Let’s go to our graphs to try to see a little more clearly.

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Total market capitalization pulls out of significant resistance

Price of the total market capitalization of cryptocurrencies on a daily scale
Total Cryptocurrency Market Cap Price (1D)

After several weeks of evolution below the red resistance zone, the market managed to extricate itself from it. This is a good thing since it demonstrates the bullish market momentum which is, I remind you, always in a rebound within the bear market. After reacting quickly on the low of summer 2021, the market continued to push and is gradually approaching a technical threshold: the support of last May and June.

For the moment, we are not there. However, the closer we get to it, the more it will be necessary to be on guard about a market downturn. As long as the market capitalization does not lose the 1,050 billion, the structure will still be bullish. Thus, keep your eyes on the red zone, confluent with the bearish reversal point as well as the trough of last May. If the market is led to lose this zone, this should alert us to a change of trend to move on a new bearish momentum.

Beware of the future dynamics of altcoins that are linked to Ethereum

Market capitalization price of cryptocurrencies excluding Bitcoin and Ethereum on a daily scale
Price of cryptocurrency market capitalization excluding Bitcoin and Ethereum (1D)

Since our previous update on cryptocurrencies, I had the opportunity to update this graph. From now on, I use the volume profile, an indicator that I find very relevant. Here, we see that the altcoins have freed themselves from the POC, the level on which there was the most trading volume.

So, since it was a major resistance, we can expect a flip of this area to be able to turn it into support. This zone is in confluence with the resistance that we had already identified in the previous weeks.

As long as this area is not lost, we can hope for the continuation of the bullish momentum. However, it will be important to take your precaution towards the market when the altcoins approach or reach the Value Area High (VAH) shown with black dotted lines.

This VAH is practically at the same level as a resistance that we had previously identified. This demonstrates the relevance of the levels represented on our charts and the need to be cautious. It is highly possible that the altcoins will pause or top in the orange zone. However, an excess of altcoins is possible above the VAH. Still, it seems best to wait and watch the price action to see if there is any slowdown or not on the buying side.

Bitcoin dominance is still in freefall

Weekly Bitcoin Dominance Course
Bitcoin Dominance Price (1W)

Finally, if you have read my previous analysis, you will see that the bitcoin dominance is currently fulfilling my bearish scenario. With the weekly scale, the goal is to take a step back. This allows a better understanding of the current situation of bitcoin compared to the rest of the market. In my opinion, we are closer to the end of corrective movement only from the beginning. After being rejected on its upper limit, the dominance of bitcoin and lost its pivot zone and a second key level.

Currently, it is heading towards its lower limit which has been an effective support since May 2021. Thus, we can expect a reaction from bitcoin in the green zone that I have represented. This area is a confluence of two levels. First, the lower limit of the current range. In addition, the low point of April 2018 on which the price reacted at the beginning of the year 2022. Let us therefore monitor this level on which the bitcoin will most likely bounce back. This could allow it to regain strength and operate a new rotation of capital within the crypto market.

An Ethereum that keeps growing

Ethereum price against Bitcoin intraday
Price of Ethereum against Bitcoin (H4)

This time, I went to a smaller unit of time, the H4 scale, to use the volume profile. Here, the objective is to show you the trend strength between Ethereum and Bitcoin. The latter manages to easily flip the resistances to make them supports. These areas are technical confluences that contain the VAH of a specific session as well as the POC. Thus, it is possible to play the rebounds quite easily. What we also see is that Ethereum has managed to retake the red zone. The latter is a major weekly resistance that we have identified in our previous analyses.

Is it a false break? Or is this a sign of the continuity of the dynamic that we have known since the second half of June? In order to hope for yet another bounce and a new high, ETH BTC must now hold above the red zone. Otherwise, it would look like a false breakout and a failure for buyers to preserve the trend. However, if Ethereum preserves the momentum and continues to set the pace for the market, we can see a return of the asset to 0.082 bitcoin (red dots).

Are private cryptocurrencies currently in vogue?

Price of the Privacy Index Perpetual Futures on a daily scale (1D)

Currently, the privacy index is in a bearish swing pattern. Recently, the price has overcome a resistance which corresponded to its VAL. Leaning on it as support, the price exploded very quickly. Now relying on an HVN (High Volume Node), the goal is to take over the POC. Moreover, you can see that the price reacted with a strong wick on a confluence of technical levels. This confluence includes a horizontal resistance, the VAH of the current range and the VAL of the previous range.

The orange zone that encompasses these technical levels is a wall that the price will have to cross. This is the challenge to achieve if he wishes to return to the minimum on the POC of the old range at 1,655 dollars. If it does not succeed and it loses its current support, it will be a passage through the LVN to return to the VAL at 1,000 dollars. More so, it will mark increased volatility with the return of a bearish pattern. So, the next few days will be important for the index. We will see if buyers have a bigger appetite for private cryptocurrencies.

Thus, here we are at the end of this crypto point of the weekend which allows you to have a broad view of the current market situation. Be on your guard, some assets are at key resistances, although we may not be at the end of the upside correction. The objective is to have our eyes fixed on the pivotal zones which will surely determine a change of structure to the benefit of the sellers. Bitcoin dominance will also be one to watch carefully. In view of the powerful decline, it is not impossible that it will regain strength during the next few weeks of August.

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