Highlights of the week:
– The market shows a strong upward movement
– The decline of Bitcoin dominance
– Altcoins are seeing massive gains
– Bitcoin on the verge of regaining the 200-MA
The market shows a strong upward movement
The crypto market has seen strong positive momentum over the past week, with the combined market cap of all cryptocurrencies surpassing €1 trillion for the first time in over 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 major price target for the bulls could be around €27,000-30,000.
After a record 74-day streak 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. Although opinion remains in the fear zone of 31, this represents a significant improvement as the score is up 13 points from last week.
The Decline of Bitcoin Dominance
After a long process of consolidation inside the wedge pattern, the bitcoin price finally extended its gains above the overhead resistance. Bitcoin was able to clear the €22,000 level and rose to €24,000, the highest level 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 are pushed. Some of this market share has also been taken by Ether, which has seen its dominance rise over the same period from around 14% to 18.9%. However, this is still far from Ether’s record high of 32% in the 2017 bull market.
Altcoins are seeing massive gains
This week, investors have been aggressively buying major altcoins, pushing prices to double-digit gains over the past 7 days. Ether hit the €1,600 level, up nearly 60% in a week. The price bounced off the rising trendline support before a major upward move. The RSI and MACD have moved into bullish territory on the daily charts, signaling that the buyers are in control of the market.
The strength of ETH has caused a rotation from bitcoin and stablecoins to Ether, with smaller altcoins benefiting from the overall upward trend 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 and reached the €46 level, the highest since May 26. The price jumped about 80% from the low formed in mid-June. The €40 level serves as support, while the €50 level is the next resistance for the bulls.
ADA is still stuck in the trade channel and has lagged in recent rallies. The price jumps between €0.41 and €0.50. An upside break could trigger further gains, while downside support is at €0.40.
AVAX has been one of the biggest winners, rising 50% over the past seven trading sessions. The price managed to break the €20 resistance zone with a large size, leading to a range of €26, the highest price in the last 2 months.
LINK is up around 25% since touching the €5.8 support. The price is now approaching a resistance level above €7.7. Momentum indicators such as RSI and MACD are in bullish territory and further gains are possible from here.
XRP managed to break out of the downward dynamic resistance from the trendline it had been trading under since early May. The price has managed to gain around 20% in the last 7 days, with momentum indicators still trending higher.
Bitcoin on track to regain 200-MA
The weekly bullish move is mostly driven by rising investor sentiment and the positive move in bitcoin, which is trying to break out of a long-term descending resistance line and reclaiming its 200-week moving average (MA).
The 200-week MA has served as the price floor for bitcoin many times 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 crossing it could lead to a broader market recovery after a long period of selling.
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This content is provided 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 any investment. Please note that past results are not an indication of future results.