Altcoins in sale, Bitcoin dominance without direction
The overall market is again falling by a good 10 percent towards the important US$ 170 billion threshold. The Bitcoin (BTC) as well as the Altcoins examined important support zones, but were able to recover somewhat from this fall. Currently, bulls and bears are fighting for the US$200 billion total market capitalisation.
View of total market capitalisation
The overall market for all crypto currencies had to cope with strong sales at the beginning of last week. The market capitalization slipped down to the grey support area at 172 billion US dollars. Thus the price target forecast for the underside in the previous week was worked off. In this area, the first buyers came back into the market and raised the total market capitalization briefly above the 205 billion US dollar mark again. The majority of the old coins were also able to break away from their lows and, together with Bitcoin, recorded their first weekly profits again.
For the time being, the important support of 170 billion US dollars at the end of the week was defended by the bulls. Negative, however, is that the 200 billion US dollars range was again not overcome sustainably. Currently, the market capitalization of all crypto currencies is quoted at 194 billion US dollars, just below the exponentially moving average of the last 10 days. So the bears still have the upper hand.
Only when the psychologically important 200 billion US dollar mark is passed lastingly by the end of the week will there be chances of an increase in the direction of 225 billion US dollars. At present, however, the downside risks still predominate.
- A breach of the 170 billion US dollars on the underside will activate targets in the range of 155 billion US dollars as well as 133 billion US dollars.
- This would inevitably be accompanied by a break in the 6,600 US dollar range in the Bitcoin exchange rate.
- Although new Altcoins are listed daily on the stock exchanges, Bitcoin influences with its nearly 70 per cent market dominance the direction of the total market. Altcoins are a big part of the gambling industry – read more.
- Accordingly, the total market capitalization would also benefit decisively from a timely bullish movement of BTC towards the US$8,000 mark.
Viewing the Altcoin chart vs. Bitcoin
Let’s take a look at the chart of the Altcoin/Bitcoin pairs opposite BTC. The chart tends to be directionless and volatility is gradually decreasing.
The red resistance zone continues to cover the upper side. The underside, on the other hand, is supported by the super trend. Only a few Altcoins are currently developing better than the Bitcoin itself.
As long as a broad mass of crypto currencies from the second and third row do not perform stronger than the leading currency, it will be difficult to leave the green support zone sustainably and attack the red resistance zone.
However, it tends to be bullish that the Altcoins have been able to hold their ground very well in the recent past, even with larger downward movements. As long as the green support area is not left to the downside, there is no risk of a new old coin capitulation for the time being, but there is a risk that the outlook for the old coins will cloud over to the downside.
Narrow range in Bitcoin dominance
As already in the previous week, the dominance of the Bitcoin provides only few new insights. The Bitcoin dominance is only 0.05 percentage points higher at 68.26 percentage points in a weekly comparison. Since the breakout from the blue upward-trend-channel, however, a bullish wedge forms. The upper edge at 68.68 percent was started on the weekend, but could not be overcome. Since the green support area at ~ 67.20 percentage points now had several holding effects, a breakout on the upper side is to be expected shortly. If the dominance of Bitcoin manages to exceed the 68.83 percent per daily closing price again, where the super trend is currently running, the target is activated at 69.53 percent.
Only when this mark is breached is a target above 70 percentage points at 70.88 percent likely. For the time being, the dominance of the lead currency remains wedged between 67 percent and 69 percent. If, on the other hand, the 67.20 percent breaks on the underside at the end of the day, the target is 66.42 percent. The exponential moving average of the last 200 days as well as the lower edge of the bullish wedge also runs in this range. It remains to be noted that the dominance of the leading currency tends to be somewhat directionless. Only a breakout from the wedge should provide clarity.
No all-clear for the time being
The total market capitalization of all crypto currencies plummeted to the level of 173 billion US dollars as forecast last week. The lead currency Bitcoin as well as all Top 10 and Top 100 Altcoins had to put up with sharp price drops in some cases. From this level, a clear recovery rally set in. For the time being, however, this counter-movement can only be interpreted as a “cooling off” of the indicators. As long as there are no purchases on a broader front and the leading currency with its old coins in tow does not rise sustainably, the bulls will continue to move on thin ice. Only when broken support levels are regained can we speak of a bottom formation. Lower prices must therefore continue to be planned.