Highlights of the week:
– The market is showing a strong upward movement
– The fall of bitcoin dominance
– Altcoins see huge gains
– Bitcoin about to regain the 200-MA
The market shows a strong upward movement
The crypto market has seen strong positive momentum over the past week, with the total market cap of all cryptocurrencies crossing $1 trillion for the first time in more than a month. Bitcoin broke through its €22,300 consolidation range and broke above the €23,000 level, testing the critical resistance of the 200-day moving average. With a successful weekly close, the next big price target for the bulls could be around €27,000-30,000.
After a record high 74 days in the low sentiment region, the Fear and Greed index is slowly moving away from extreme fear. This recent increase has been influenced by the increased positive momentum in the market. While the opinion still remains in fear territory at 31, it represents a substantial improvement as the score is 13 points higher than last week.
The fall of bitcoin dominance
After a long process of consolidation within the wedge pattern, bitcoin price finally extended its gains above overhead resistance. Bitcoin managed to clear the $22,000 level and rose to $24,000, its highest point since mid-June. Over the past month, Bitcoin’s market dominance has fallen from a range of 48.8% to 42%, indicating that optimism is returning to the market as smaller, more volatile coins rise. Some of this market share has also been taken by Ether, which has seen its dominance increase over the same period, from around 14% to 18.9%. However, this is still a long way from Ether’s all-time high of 32% in the 2017 bull market.
Altcoins See Huge Profits
This week, investors have been aggressively buying major altcoins, pushing prices to double digits in the past 7 days. Ether hit the $1,600 level, up nearly 60% in one week. The price bounced off the rising trendline support for a major upward move. The RSI and MACD have entered bullish territory on the daily charts, indicating that buyers are in control of the market.
The strength in ETH has led to a rotation from bitcoin and stablecoins to Ether, with smaller altcoins taking advantage of the general uptrend in the market. Major altcoins including Solana, Link, XRP and Avalanche were among the best performing assets.
SOL managed to break the wedge formation higher, reaching the $46 level, its highest level since May 26. The price rose about 80% from the low that was formed in mid-June. The $40 level serves as a support while the $50 level is the next resistance for the bulls.
ADA is still stuck in the trading channel and has lagged recent rallies. The price fluctuates between € 0.41 and € 0.50. An upward breakout could lead to further gains, while the downward support is at €0.40.
AVAX was one of the biggest winners, up 50% over the past seven trading sessions. The price managed to break through the $20 resistance zone with great force, leading to a range of $26, its highest price in the past 2 months.
LINK has gained about 25% since the $5.8 support. The price is now approaching a resistance level above $7.7. Momentum indicators such as the RSI and MACD are in bullish territory and further gains are possible from there.
XRP managed to break the downward dynamic resistance of the trendline it has been trading under since early May. The price has managed to gain around 20% in the last 7 days with momentum indicators still higher.
Bitcoin on track to regain 200-MA
The weekly bullish move is mainly driven by rising investor sentiment and positive move in bitcoin, which is trying to break out of a long-term bearish resistance line and recover its 200-week moving average (MA).
The 200-week MA has often acted as a floor price for bitcoin in the past, and the price has not closed below this MA for an extended period of time. The MA is currently hovering around the €22,500 level and exceeding it could lead to a broader market recovery after a long sell-off.
Have you been tracking bitcoin price action or small cap formations and want to capitalize on market movements along the way? Make sure to trade with our Bitpanda Pro iOS and Android apps. For a convenient trading experience from your computer, you can also rely on the traditional Bitpanda Pro crypto exchange.
This content is for informational purposes only and should not be considered financial advice. We strongly recommend that you take the time to do the necessary research before making an investment. Please note that past performance is not an indication of future performance.