Cryptocurrencies under the sign of peace in the context of the end of the year?

In this new cryptocurrency spot of the weekend, we will analyze some crypto market data to understand the evolution of the market in recent days and what to expect in the next few weeks. In this year-end context with Christmas approaching, markets tend to be quieter with lower volatility. Without further ado, to your charts! Let’s go to TradingView to access the market analysis.

Cryptocurrencies Still Amorphous, Is Volatility Coming Back?

The price of the total market capitalization of cryptocurrencies (Bitcoin, Ethereum and altcoins) on the h4 scale.

With the continuation of compression between EMA13 and EMA25, it seems appropriate to move to a smaller time scale as the state of cryptocurrencies has not changed at all on a daily basis since last week. Here we can see the evolution of the market between the MA100 and the EMA200, the two moving averages that the price is currently reacting to. Above the EMA32, the market may turn towards the EMA200 in the next few days.

Will he get away with it? If the market gets there, the goal will be to recapture the old support we identified at that time previous analyses. By closing above $845 billion, the way will be clear for the cryptocurrency to return to its daily MA100, which is currently at $880 billion. Nothing has been decided yet, it is futile to think of higher goals.

However, if the market goes back to the MA100 H4 and breaks it, the way is open for a return to 760 billion. This is the type of exit or double that will lead to a huge market explosion when volatility returns. The compression under resistance Since it is not the best configuration, buyers will have to search.

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Altcoins follow Bitcoin and Ethereum

Cryptocurrency market capitalization price per 3D unit of time (excluding Bitcoin and Ethereum)
Cryptocurrency market capitalization price per 3D unit of time (excluding Bitcoin and Ethereum)

For altcoins similar to the previous weeks, we can see that they are developing in line with the total capitalization, which is heavily influenced by Bitcoin and Ethereum. The difference here is the magnitude of the rebound, which is less important, and which demonstrates the loss of investor appetite for altcoins, which are quite risky assets given the current market context.

While the overall cap is moving through resistance, altcoins are moving through support, a very different pattern that demonstrates the increasing power of sellers versus buyers. The market is fairly quiet, which does not make things easier for those hoping for a bullish scenario for the end of 2022.

In addition to the need to protect the existing support, a bullish scenario can be envisaged provided the market breaks free from the old support at $350, which is about to merge with the MA100, which could restore the double technical limit. to confirm a change in market trend.

Is the reign of the king of cryptocurrencies under resistance?

The course of dominance of Bitcoin against other cryptocurrencies on a daily basis

Last week we noted the favorable position of bitcoin’s dominance in the range it has developed since early November. The acceptance of the exchange rate above 40.44% was confirmed by the increasing dominance of bitcoin, which returned to the resistance zone where the MA100 is located. However, the king of cryptocurrencies is still unable to gain enough strength to overcome this technical consolidation, which could allow it to return to a 41.32% market dominance.

The current challenge within the range is to stay above the 40.44% upside, along with the upside. This is a technical level that combines with the EMA triplet. If the king of cryptocurrencies loses this level, it will likely return to the support that allowed it to rise again in early November as well as at the end. Depending on the route taken by Dominance, Ethereum and altcoins may develop differently and take the opportunity to record several percentage increases in a rather calm context.

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Ethereum’s situation is still the same against Bitcoin

Daily price of Ethereum against Bitcoine

The situation is the same for Ethereum. This leads us to identify and discuss a few relevant items, as today’s analysis will be the same as last Sunday’s. The sole purpose of the asset is to protect the existing support against the king of cryptocurrencies in order not to fall to the EMA200 and then to the support represented in green in case of a strong decline.

If Ethereum manages to hold and push the technical limits above, the challenge will be to recover 0.0783BTC so that it can outperform Ethereum. In this framework, altcoins will have only one solution: to push upwards. However, we are not quite there yet, Ethereum continues to sidestep the cryptocurrency king, showing little volatility.

DeFi capitalization under EMA200, what will happen?

Capitalization price of decentralized finance cryptocurrency on a daily basis
Capitalization price of decentralized finance cryptocurrency on a daily basis

This weekend, we can look to the decentralized finance sector to finish the cryptocurrency spot. We use the market capitalization calculated by TradingView through a basket of over 65 different cryptocurrencies from this sector. The difference from the DEFI-PERP index, which we used when FTX was still available, is that this capitalization only allows for trend detection. It does not provide exposure to the sector as a whole.

Decentralized finance is experiencing a fairly simple evolution in the continuity of previous weeks. Price is $34.8/$35 billion above technical support. However, we can see a change: the price is about to break out of the EMA32. If there is a price acceptance above this level, the cap could rise to the resistance above $40 billion and then towards the MA100.

We’re at the end of the crypto spot this weekend. It should be noted that the market is in an amorphous state. It generally develops in the same direction as the previous weeks. This development stems from a year-end context with less volatility. However, prices are likely to fluctuate with the release of inflation figures next week, which is likely to influence market reaction. Depending on the divergence with the consensus, prices can explode downwards or upwards, which leads to an element to remember: it is risky to position yourself in the markets before the release of such economic data, unless you manage the risks well.

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