Market update: $BTC, BTC dominance and $MATIC

The month of March remains in the red after another bearish week in the cryptoasset market which has generated a declining low from February’s low, breaking the short-term support zone. This situation can be clearly seen in the total capitalisation chart, which is back to test the 900B area after the rejection from resistance.

This is also reflected in the chart of $BTC which continues its downward movement from $25k resistance and has already tested the $20k level after last Thursday’s bearish breakout.

This leaves us with a short-term bearish continuation scenario which at the moment has stopped at $20k, leaving $21.5k as a conflict zone (which may act as resistance in the event of a pullback to the breakout zone) and $18k as possible support, which is the area of the December highs and where the uptrend line of the last few months passes through, as we can see in the 4h chart.

This makes us consider a sideways scenario in this range between $21.5k and $18k for the next few weeks. Although it should be noted that next Tuesday will be known the CPI data in the USA, which can generate an increase in volatility that breaks with the scenario proposed.

This weekly movement of $BTC was accompanied by a decline in the dominance of BTC, which as we mentioned last week embodied a bearish pattern that has been reflected with the downward movement that led to Saturday, but may continue over the coming weeks if the 45% resistance is still respected.

Despite the decline in the dominance of BTC, this week highlights those tokens that manage to close with a result close to 0, as is the case of $XRP which is approaching the weekly close with -1.78%, or those that present a more bullish scenario in the medium term, as is the case of $MATIC, which as we see in the graph continues to maintain a sequence of rising lows and highs since June, as we have discussed in other articles. $MATIC is also approaching the area of the uptrend line.

This chart structure may trigger a price rebound from the trend line as a retest to the resistance zone, thus continuing the bullish structure. However, its evolution must be followed closely, because if this uptrend line is lost, it would be provoking the rupture of a growing channel and could provoke a bearish movement that would have its price target at $0.70.

Finally, remember that nothing discussed in our articles can be considered as investment advice. Everyone must do their own analysis and develop their own trading strategy. The BELOBABA team only shows analysis and investment tools, and how they help us in our operations when making decisions.