The weekend met with expectations. Namely that it would see and support a bullish run on the cryptocurrency market led by Bitcoin (as it always happens in crypto). The overall market capitalization remains steady at around $140 Million.
It’s not just a number; it’s the current resistance level the market will need to overcome to start a new bullish run. If this shouldn’t happen, we’ll see things going back to the way they were during the last few weeks. That means the bears will continue to rule.
For now, Bitcoin remains the world’s largest and most traded digital asset with a 50.7% share of the general market.
But is Bitcoin’s dominance a fact of nature? Of course not. Will it ever be challenged by some other project? It could be. The other two coins in the world’s top three (Ethereum and Ripple) are pushing the envelope in a way that suggests that one of them could reach Bitcoin at some point in the future (but not the immediate future, for sure).
In this article, we’ll try to elucidate what the next week will hold for the world’s top three cryptocurrencies by market capitalization, and we hope you’ll find it useful.
The week for Bitcoin
The price has been moving sideways ever since it hit the $4000 barrier. The oscillation has occurred between the $3,800 and $4,000 levels. This fluctuation shows how the bears and the bulls are fighting it out without any party achieving any significant breakthrough.
As we write this, Bitcoin is trading at $4,026.39 in slightly red numbers (0.04%) over the last day. The market capitalization remains strong, and it’s nearing $71 billion.
In the short term, the mother and father of all digital assets finds itself amid a price correction process so the current price could fall to $3,990.83 by week’s end. This is consistent with Elliott wave theory (if you don’t know what this is don’t worry it’s just a technical analysis technique favored especially by forex traders). The price walk could go as high as $4011.3 with an immediate support level at $3927.89.
The Stochastic Indicator keeps moving decisively towards the overbought zone, which is usually interpreted as a good indicator that the bullish level will be maintained for the time being. But the same projection points to the indicator leaving that zone by midweek.
The current scenario is reminiscent of Bitcoin’s behavior in 2015. So this could very well be the last low floor for Bitcoin before the bulls come back to visit (and probably take over) the market seriously.
Finding out if the level of support is not surpassed will take a few hours of careful observation or if it, in the end, the market’s behavior changes to go against the current and shatters all the week’s expectations. As things stand, the dominant trend for BTC is downwards, and it could go back to $3,800 rather soon (even today).
The Aaron UpTrend indicator is moving in such a way that it seems it confirms this idea. But let’s keep in mind that one shouldn’t act on any indicator in technical analysis by anticipating what it will do, which is a common rookie mistake. You must always move on things that are actually happening, and not on things that could happen.
The EMA25 line also indicates that we are crossing over into the sales area so the bears will hug us hard again.
The week for Ethereum
Ethereum is the world’s second digital asset by market capitalization, and it’s shrunk in price by 1.21%. As we write this, the token’s price is at 139.44 USD, it trades in red numbers for 24 hours (0.8%), but it maintains its market capitalization at almost $14.7 billion. Which means it lost approximately USD 300.00 over the weekend.
Ethereum has been a very discouraging alternative coin for months now (it even lost its second spot by market cap to XRP for a few weeks) and the next week doesn’t look any better. It started strongly and then… well, the technical term would be that it’s been “moving sideways,” but it’s been so violent that “ping bar” describes it better. It reached, but then it started to bounce back and forth until it reached the current price, which presents a reduction of support levels.
According to Elliott Waves, the support level of $142.25 is broken already, and the price is going to fluctuate its way down to $138.00. And then, we can expect to go even lower to the support level of 135.9 as it keeps moving sideways between $135 and $140 for the rest of the week.
EMA 25 predicts that the bears will come into the market in a big way, starting on Monday. Unless something dramatic happens in Vitalik Buterin’s project’s environment, the coin will go down.
The Klinger Oscillator (another technical indicator) also corroborates the bearish perspective because it’s crossed below the signal line and it’s moved into the limit of the buying and selling zone. The next few hours will be decisive in understanding the asset’s behavior for the rest of the week.
But it could also happen that Ethereum finds a way to uphold the $140 billion market capitalization level; that would mean that the current price correction is transitory and that would give us a rebound some time in the middle of the week.
While not the most likely outcome, it’s still possible and even reasonable as the projection of the ABCDE pattern could hit the ascending channel that is still noticeable in the Ethereum chart. Furthermore, the Chaikin Money Flow indicator confirms that, if the money flowing into Ethereum remains ascending nicely and steadily.
The week for Ripple
Ripple’s XRP stands firm in third place by market capitalization. It’s been basically immune (very few coins are behaving like that) from what’s going on with Bitcoin and the rest of the market.
As we write this, XRP’s price is at $0.316991, and trading in slight red numbers. It’s been losing value over the last day.
XRP spent the week moving sideways in a very narrow gap between $0.322 and $0.316. No significant variations happened. This is because XRP has a certain degree of autonomy when it comes to its price. It’s not as dependent as most other assets on Bitcoin’s behavior.
It’s one of the very few projects that’s moving from domination by sheer speculative forces towards price autonomy based on strong fundamentals, real demand, and real-life use cases. So XRP suffers less than the rest of the market when the bear hugs.
But that doesn’t mean XRP is isolated. Sudden changes in the market (which are not particularly rare in crypto) will hit it solidly. But for now, it remains trapped in the aforementioned band, and it seems this week will be the same. The trend will be slightly bearish without really affecting any crucial changes in price.
That conclusion is supported by the EMA 25 for March 19, and the RSI, which is bearish in the middle of the chart, as if balancing the pressures exerted by both buyers and sellers.
XRP will go bullish as soon as any factor (internal or external) boosts its price a little. This will be likely to happen when the RSO hits 80.
Image courtesy of Pixabay.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.