This week has left us with broadly bearish results in the cryptocurrency market as seen in the total capitalization chart and has generated a pullback to the resistance broken last week.
It now remains to be seen whether this August high acts as support or whether we are looking for a new rising low that could test the $1T area, before the possible upward path of the double bottom figure I mentioned last week.
The bearish market movement has been accompanied by a week of low volatility for the BTC dominance, which has barely moved and remains at the top of the sideways channel.
Given the declining volume at this resistance area, it seems likely that we will see a new rising low in the uptrend so far this year, which could look for support at 45%-46% before retesting resistance.
$BTC has generated a rejection from $31k, stopping at the top of the widening channel created in the first quarter of the year and initiating a rebound in search of a new rising low.
In this case, trading volume has also declined significantly in recent weeks, causing the bearish divergence of the RSI that we have discussed in previous posts. Therefore, the scenario of consolidation cuts to the broken resistance zone at $25k-$26k is gaining strength.
In the rest of the market the outlook is very similar, with bearish movements after last week’s bullish breakouts for tokens such as $ETH or $SOL, which at the moment are looking for support to consolidate the breakout. Or with more pronounced movements, as in the case of $ALGO or $PERP, which have accumulated losses of close to -20%.
One of the few tokens showing a different scenario is $ZIL, @Zilliqa’s token, which closed the week with -1%, but with a notable increase in trading volume, as we can see in the graph.
This increase in volume has occurred at a price close to the $0.037-$0.04 resistance and triggered a rebound to $0.03, which at the moment is still respecting the last rising low. $ZIL is one of the tokens that has fallen the least this week, but its long-term situation is still bearish, at a price far away from its ATH at $0.25. For the first time since last year, it has started to generate rising lows, which brings some optimism to its situation. The most bullish scenario is to see higher highs breaking the $0.037 resistance and could look for $0.05, but this requires increasing volume as it tests the resistance. As long as this does not happen, the dominant trend remains bearish, although it is starting to show some signs of weakness at this low.
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.