The altcoins will experience a new wave of decline for the beginning of the year 2023?– As Solana began to sink below $9, Vitalik Buterin came to the rescue. Indeed, the creator of Ethereum declared that “the Solana chain has a bright future”. Immediate effect, Solana climbs by 28%. Despite this, the situation on altcoins remains worrying. Could altcoins experience a new bearish wave for the start of 2023?
Ethereum has the opportunity to regain bullish momentum
A few days now from the end of the year 2022, Ethereum (ETH) has the possibility of change dynamics. For the past few weeks, the Ethereum price has stagnated around $1,200but buyers have the option to change the situation:
Since August 2022, the sellers have regained control of the course. We can see that the troughs and peaks are descending, buyers can no longer impose themselves. However, the price is still moving above the $1,000 bracket, and buyers have the opportunity to reverse the trend. For this, it will be necessary to manage to make a fence higher than $1,350. A closure like this would make it possible to resume a bullish momentum according to the Dow theory. Be careful, the institutional bias (EMA 9/ EMA 18) is bearish and this one could block. If dropped, buyers will have to defend the $1,000 bracket.
The road will be long to find the price of Ethereum in a bullish momentum clear. Indeed, the course is always located under the bearish trendline dating from the end of 2021, and several resistors are on their way. On a weekly basis, a close greater than $2,050 will be necessary to regain a bullish momentum over the long term.
The momentum will remain brittle as long as it will remain stuck under the resistance to 60 of RSI. This resistance has been holding up for more than a year, will the operators be able to break it in 2023?
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Ethereum soon bullish against Bitcoin?
The ETH/BTC pair is in a tidied up for more than a year. A return of the rise would make it possible to find colors on the altcoins side, but this is not yet relevant:
The situation has changed little in recent weeks, but buyers have the opportunity to regain control. For this, the price must close above 0.076 BTC. A fence of this kind would make it possible to find a bullish momentum in the short term, and to go above the bearish trendline. You will also have to break the weekly resistance which has been holding since May 2021. A price rejection (red arrow) would not be a good sign, as the support has been tested several times. The more a support or resistance is touched, the more fragile it is.
The momentum is brittlebecause it stays under the bearish trendline. A development above 50 of RSI would make it possible to resume a bullish momentum, and, perhaps, to break this resistance.
Bullish signal on Bitcoin dominance, altcoins will suffer?
We talked about it in this article, a rise in Bitcoin dominance is not positive for altcoins. Dominance is sending a bullish signal :
In this unit of time, the price closed above 42% of dominance. The dynamic is now bullish on dominance, Bitcoin is attracting capital. Altcoins are already struggling right now, like Solana, and it could get worse. Indeed, the theoretical objective is now a return to the level of the top of the range at 47% of dominance. The year 2022 was catastrophic for altcoins, will 2023 be worse?
The momentum, for its part, confirms the observations on the course. Indeed, the RSI broke the bearish trendline and it continues to make new highs. There is nothing negative at the moment on the momentum.
The situation is worrying on the capitalization of altcoins
Bitcoin dominance isn’t the only worrying point about altcoins. Indeed, the capitalization of altcoins seems to be in the process of lose weekly support at $480 billion :
Things seem to be getting complicated for altcoins. the weekly support at $480 billion seems to be lost. Indeed, the candle of the week of November 7 broke the support and it seems that the continuation was only a retest of the support become resistance. For the sellers, it will be necessary to close below the last low at $428 billion to confirm the downtrend and the breakage of the support.
There remains a slight hope for altcoins. To do this, buyers need to show up quickly and the price needs to close above $495 billion. This would make it possible to regain momentum with troughs and ascending peaks, and to avoid a new wave of decline. On a dip, the next strong weekly support can be found at $330 billioneither 30 % below current price. A severe fall which would sink altcoins which have already lost a lot in 2022.
The momentum is on the other hand rather encouraging, it evolves well above the last low of June 2022. A close above 44 from RSI would bode well for the future.
Are whales still buying Ethereum?
Despite the complicated situation that is emerging at the end of 2022, the whales seem to keep buying the Ether coin. Whales are entities with more than 1,000 BTC in wallet, for Ethereum, the whales having more than 10,000 ETH in the portfolio are interesting to analyse:
Since November, the whales have been placed for purchase. Please note that the fact that they are placed for purchase does not mean that the price will rise. These entities very often recover the assets of novice players in periods of sharp decline. They accumulate usually when novices are scared, and distribute to new arrivals during periods of euphoria. Nevertheless, it shows that, for them, the current prices are interesting to accumulate.
The situation is delicate for altcoins at the end of the year. Indeed, Bitcoin dominance gives a bullish signal for Bitcoin, and altcoins could suffer. Also, the capitalization of altcoins seems fragile, the price slips dangerously below the weekly support. For its part, Ethereum has the possibility of recovering by closing above $1,350. Do the buyers have the necessary strength to make the sellers bend? The whales seem to be interested in these prices, but the accumulation could also continue below the $1,000 threshold.
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