Weekly Bitpanda Pro market recap #69

Highlights of the week 

• Market shows a strong move to the upside 
• Bitcoin dominance falling
• Altcoins see huge gains 
• Bitcoin in process of reclaiming the 200-MA

Market shows a strong move to the upside 

The crypto market has experienced strong positive momentum over the last week as the total market cap of all cryptocurrencies surged beyond €1 trillion for the first time in over a month. Bitcoin pushed above its consolidation range of €22,300 and exceeded the €23,000 level, testing the critical 200-day moving average resistance. With a successful weekly close, the next major price objective for bulls may 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 push has been affected by the increased positive momentum in the market. Although the sentiment remains in the fear territory at 31, this represents a substantial improvement as the score is up 13 points from the last week.

Bitcoin dominance falling

After a long consolidation process inside of the wedge pattern, the Bitcoin price finally extended its gains above overhead resistance. Bitcoin was able to break the €22,000 level and spiked to €24,000, its highest peak since mid-June.  Over the last month, Bitcoin’s market dominance has declined from a range high of 48.8% to 42%, indicating optimism is returning to the market as smaller, more volatile coins are pushed higher. Some of this market share was also soaked up by Ethereum, which has seen its dominance rise in the same period, up from some 14% to 18.9%. However, this is still a long way off from Ethereum’s all-time high of 32% back in the bull market of 2017.

Altcoins see huge gains

This week investors were aggressively buying major altcoins, pushing the prices to double-digit gains in the last 7 days. Ethereum rallied to the €1,600 level, surging almost 60% in a week. The price was bouncing off the ascending trendline support before a major uptrend move. The RSI and MACD moved into bullish territory on daily charts, signalling buyers are controlling the market.

ETH strength has caused a rotation from Bitcoin and stablecoins into Ethereum, with smaller altcoins enjoying the general uptrend in the market. Major altcoins including Solana, Link, XRP and Avalanche were among the best-performing assets.

SOL managed to break to the upside from wedge formation and has reached the €46 level, the highest since May 26. The price surged some 80% from the low formed in mid-June. The €40 level acts as support, while the €50 is the next resistance for the bulls.

ADA is still stuck in the trading channel and has lagged behind in recent rallies. The price is bouncing between €0.41 and €0.50. A break to the upside could ignite further gains, while downside support stands at €0.40.

AVAX was one of the biggest gainers as it surged some 50% in the last 7 trading sessions. The price managed to break the €20 resistance area with great magnitude, leading to a range high of €26, the highest price in the last 2 months.

LINK gained some 25% since touching the support of €5.8. The price is now approaching an upper resistance level at €7.7. Momentum indicators, such as RSI and MACD, are in bullish territory and further gains are possible from this location.

XRP managed to break out from the descending dynamic trendline resistance under which it was trading from the start of May. The price managed to gain some 20% in the last 7 days with momentum indicators still pointing upwards.

Bitcoin in process of reclaiming the 200-MA

The weekly bullish move comes mostly from increased investor sentiment and positive movement from Bitcoin, which is trying to break out from a long-term descending resistance line and is in the process of reclaiming its 200-week moving average (MA). The 200-week MA has acted as the price bottom for Bitcoin numerous times in the past and the price did not reach a close below this MA for a sustained period of time. The MA is currently around the €22,500 level and flipping it could bring broader market recovery after a long time in a seller’s market.

Have you been following Bitcoin’s price development or the smaller caps’ formations and want to act on the market moves on the go? Make sure you trade using 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.

Disclaimer This content is for informational purposes only and is not to be taken as financial advice. We highly recommend taking the time to do the necessary research before making any investment. Be aware that past performance is no indication of future results.