A continued bullish week in the crypto asset market with positive results for most tokens. This rise is perfectly represented in $BTC which has generated an increase of +20%. The largest market cap asset has been very favoured, especially in the second half of the week, as clearly seen in the BTC dominance chart which has managed to break the resistance of the previous high set above 42%.
This increase in the growth rate of BTC dominance is directly linked to the increase in $BTC trading volume, which has been on a steady rise this week, reaching a daily high last Thursday following the move that generated the bullish breakout of the $18.5k level.
This breakout movement accompanied by increased volatility, leaves us with a bullish scenario that may continue over the next few days, but the price is dangerously close to the resistance zone of the last high ($22.8k) and the macro resistance at $25k. This price range is the area to beat in order to be able to propose a scenario of a change in the main trend, so we will have to pay special attention to this range, because if this resistance area becomes strong, the downtrend could be reactivated, causing a rejection that could take us back to $18.5k.
In this situation, technical indicators such as the RSI can give us a clue to the strength or weakness of a movement. In the case of $BTC, we see how the weekly movement has been accompanied by a bullish cross of the RSI, giving truth to the bullish momentum. But this situation could change in the event that these rising highs continue to occur and we begin to detect bearish divergences in RSI, which would force us to rethink the scenario since rejections from resistance could occur.
Regarding the rest of the market, this week some tokens from the gaming sector that I mentioned last week continue to strengthen, such as $MANA (+60%), $SAND (+35%), or $GALA (+43%), accumulating +200% in the last month, after two bullish weeks in January.
We have also seen native tokens of networks such as $AVAX or $FTM, which have accumulated almost +40% weekly, after several weeks of little activity. Another of the networks that has been rising for weeks is Solana, the $SOL token has already accumulated a monthly accumulation of +123%, after this week’s movement of +55%.
The $SOL has continued on the upward path after the resistance was broken, triggering an exponential move over the last few days that has taken the price above the $20 level, setting a weekly high at $25. Given the technical situation of the asset, this upward move could continue over the next few weeks, but it is already approaching the conflict zone between $26 and $28. This zone may act as resistance in search of a declining top in the long term downtrend, which would begin to show signs of weakness if the next resistance at $38 is broken. If these bounces from the first resistance ($28-$30) are detected, the nearest support zone is at $18, marking a range of low liquidity in which we see that each time the price has entered this price zone ($18-$30), the price movement has become much more volatile.
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.