Bullish continuation week in the crypto market that has left a +9% return in total market cap, generating the breakout of the resistance zone that we have discussed in recent weeks.
This breakout move to resistance would be confirmation of a double bottom pattern which, while it may still trigger cuts as a pullback in the short term, could take us to the $1.5T area as a full target for the pattern in the medium term.
This global increase in the market dyes the vast majority of tokens green, but with very mixed results, as we can see in the following rankings.
Among them, $10 SET stands out with a +46%, being the best performer and on the opposite side $BEL with a weekly result of -8%. However, this time I wanted to highlight the evolution of two large-cap tokens that had not been in the ranking for several weeks, but after the good weekly result have created structures that can be interesting.
Firstly, I wanted to highlight the evolution of $SOL, the token of @Solana occupies the second place in the weekly ranking with a performance of +21%, which has caused the break of the bearish channel that was tracing during the last year.
Although this movement has caused the break of the bearish line that draws the channel, it has not yet left any higher highs than the one set in January in the $27 area. This high is the resistance to beat so that the break of the channel can seek its target in the $35-$40 area, but it is likely that before this happens, a cut is created as a pullback to the broken trend.
I would also like to point out that bearish channels usually occur in bearish trends and although they tend to break to the upside as on this occasion, these breaks are usually one-off movements against the main trend, which in this case continues to be bearish. We will have to pay special attention to the situation of the technical indicators in the event that our main scenario is fulfilled.
Another token I would like to analyse this week is $ETH. The second largest market cap token, which has posted a weekly gain of +12%, generating a break of the August high, the key area of $2000.
For this breakout to be confirmed, the daily candlestick needs to close above resistance to rule out the possibility of a fakeout. If this confirmation occurs we could see a consolidation phase after the breakout which could lead to a sideways move between $2000 and $2500 (depending on how far the upward move goes), but it would be great news for the future evolution of the price.
Finally, I could not end this weekly summary post without taking a look at the situation of $BTC, which has risen by +8% this week, but fails to make it into the top 10 of the ranking.
This can be seen mainly in the BTC dominance chart which, unlike the total capitalisation chart has not managed to break its resistance and continues in the upper zone of the sideways channel and has led to a more bullish component for the altcoins this week.
$BTC, on the other hand, has managed to break the short-term resistance, testing the $31k level, but for the moment it continues to find a brake on the bullish line of the “widening” we traced a few weeks ago.
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.