The second month of the year closes and the cryptoasset market leaves us with a sideways structure after the upward momentum of January, as we can see in the Total Market Capitalisation chart, which has ranged between $950B and $1.1T.
This monthly situation is replicated on the $BTC chart, which also registers a month of sideways movement in that zone near the $25.3k resistance that left the monthly low at $21.3k.
As we can see in the chart, February saw an ascending high, but as we have been commenting in the last few weeks, the uptrend was showing signs of weakness and after last week’s bearish rejection we have seen how in the first days of March a bearish response was created which has generated the break of the upward acceleration trend, leaving a weekly close at -5%.
Despite this bearish move, the price continues to respect the February low at $21.3k. It makes me consider two scenarios for the first weeks of March, as the Fed meeting to review interest rates will take place in the middle of the month and this could lead to a significant increase in volatility.
Firstly, if this low is confirmed as a support zone, it could lead to bullish impulses up to the $23k-$23.5k zone or even to a retest of resistance. But in the event of a break of this low at $21.3k, the bearish move is likely to extend to the $19.5k-$18k area.
If we cross these two scenarios on the $BTC chart, with the BTC dominance chart, we can draw some interesting conclusions.
As we can see in the chart, the short-term structure of the dominance is similar to $BTC, with the difference being that BTC Dominance has not made a higher high than the January high. If this trend of declining short-term highs were to be extended with a declining low, it would trigger a bearish move in BTC Dominance in search of support at the 42% area.
Should this scenario play out, we could see a month where altcoins take advantage of $BTC, either because they go sideways during a BTC bearish move or because they rise while $BTC goes sideways.
As for the rest of the market, this week is red for the vast majority of tokens, although there are a few notable exceptions.
In this ranking ordered by weekly performance we see how some tokens that we have mentioned in previous weeks remain with a result close to 0, as is the case of $PERP, which has already accumulated +100% so far this quarter. But without any doubt the most outstanding of the week is $RLY. The Rally token has generated an increase of +93%, almost doubling its price. But despite this increase, its price remains in the area of historic lows, as can be seen in its daily chart.
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.