Bullish signal for Bitcoin, will altcoins suffer?

Altcoins will experience a new wave of decline at the beginning of the year 2023?– When Solana started to sink below 9 dollars, Vitalik Buterin came to the rescue. In fact, the creator of Ethereum declared that “the Solana chain has a bright future”. Instant effect, Solana climbs by 28%. Despite this, the situation on altcoins remains worrying. Could altcoins experience a new bearish wave at the start of 2023?

Ethereum has an opportunity to regain bullish momentum

A few days now from the end of the year 2022, Ethereum (ETH) has the opportunity to change dynamics. For the past few weeks, the Ethereum price has stagnated around $1,200but buyers have the option to change the situation:

Ethereum Price vs. Dollar (3D)

Since August 2022, the sellers have regained control of the pitch. We can see that the valleys and peaks are falling, buyers can no longer impose themselves. However, the price is still moving over $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 one bullish momentum according to the Dow theory. Be careful, that one institutional bias (EMA 9/ EMA 18) is bearish and this could block. If it is dropped, buyers will have to defend $1,000 bracket.

The road will be long to find the price of Ethereum in one bullish momentum clear. In fact, the pitch is always placed below bearish trend line dates from the end of 2021, and more resist on the way. On a weekly basis close to greater than $2,050 will be needed to regain bullish momentum in the long term.

Momentum will remain crazy as long as it will remain fixed under the resistance to 60 of RSI. This resistance has held up for more than a year, will the operators be able to break it in 2023?

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Ethereum Will Rise Against Bitcoin Soon?

The ETH/BTC pair is in a cleaned up for more than a year. A return of the increase would allow to find colors on the altcoins side, but this is not yet relevant:

The ETH/BTC pair is in a weekly range.
The price of Ethereum against Bitcoin (3D)

The situation has changed a bit in recent weeks, but buyers have an opportunity to regain control. For this, the price must close 0.076 BTC. A fence of this kind would make it possible to find one bullish momentum in the short term, and to go over bearish trend line. You will also have to break weekly resistance which has held since May 2021. A price rejection (red arrow) will 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 progress is crazybecause it remains below bearish trend line. A development above 50 of RSI would allow bullish momentum to resume and perhaps break this resistance.

Bullish signal of Bitcoin dominance, altcoins will suffer?

We talked about it in this article, an increase in Bitcoin dominance is not positive for altcoins. Dominance sends one bullish signal :

Bitcoin dominance sends a bullish signal.
Bitcoin Dominance Chart (3D)

In this time unit, the price closed above 42% of dominance. The momentum is now bullish about dominance, Bitcoin attracts capital. Altcoins are already struggling, just like Solana, and it could get worse. In fact, the theoretical target is now a return to the level at the top of the range on 47% of dominance. The year 2022 was disastrous for altcoins, will 2023 be worse?

The progress in turn confirms the observations on the course. Actually the RSI broke bearish trend line and it continues to create new heights. There is nothing negative currently on the momentum.

The situation is worrying for the capitalization of altcoins

Bitcoin dominance is not the only point of concern about altcoins. In fact, the capitalization of altcoins seems to be in progress lose the weekly support to 480 billion dollars :

The capitalization of altcoins is slipping dangerously below the weekly support.
Altcoin Capitalization Chart (1W)

Things seem to be getting complicated for altcoins. that weekly support to $480 billion seems to be lost. In fact, the candle in the week of November 7th broke the support and it seems that the continuation was just a retest of the support. resistance. For the sellers, it will be necessary to close below the last low at 428 billion dollars to confirm downward trend and breach of support.

There is still a little hope for altcoins. To do this, buyers must appear quickly and the price must close 495 billion dollars. This would make it possible to regain momentum with troughs and rising peaks and avoid another wave of decline. On a dip, the next strong weekly support can be found at 330 billion dollarseither 30% below current price. A severe fall that would sink altcoins, which have already lost a lot in 2022.

Momentum, on the other hand, is quite encouraging, developing well above the last low of June 2022. A close over 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 the wallet, for Ethereum, the whales have more than 10,000 ETH in the portfolio are interesting to analyze:

The whales have been buying since November.
Addresses with more than 10,000 ETH Source: Glassnode

Since November, the whales have been put to purchase. Be aware that the fact that they are set for purchase does not mean that the price will increase. These entities very often recover assets from new entrants during periods of sharp decline. The accumulate usually when beginners are scared, and distribute to new arrivals in 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. In fact, Bitcoin dominance provides a bullish signal for Bitcoin and altcoins are suffering. Also, the capitalization of altcoins seems fragile, the price is slipping dangerously below the weekly support. For its part, Ethereum has the opportunity to recover by closing above $1,350. Do the buyers have the strength to make the sellers bend? The whales seem to be interested in these prices, but the accumulation may also continue below the $1,000 threshold.

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