It seems that at this new point of the cryptocurrency market, the second month of December there are many topics to discuss. With Bitcoin breaking $100,000, there have been some changes on the charts, an ideal opportunity for things to return to normal at the end of 2024. In this market analysis, we will identify the current levels to watch, the bias before the next monthly close, and the scenarios that would could appear.
The market continues at this good pace
After leaving the downslope a resuming the pivot around $2.2 trillionthe ATH passage took place immediately. It has now been five weeks since the increase was continuous on a weekly basis. However, we note that the amplitude of upward movements is less significantreflecting some “slowing down” in the strength of this momentum.
Adding the use of the Fibonacci extension from the high of the previous bullrun to the low point at the end of 2022, we can determine a technical target (1.618 Fibonacci) around $4,443 billion. That leaves room for nearly $1 trillion in growth. With Bitcoin currently around $100,000, there is a lot left good bull outlook for ethereum not yet at its ATH as well as altcoins.
Altcoins have similar dynamics
As for altcoins, the dynamics of capitalization is particularly similar to that of TOTAL1. After its development we can expect creating an ATH in the coming dayswhich will allow altcoins to get their moment of glory and soar to new heights. If rejected, we expect pricing development gates (to over $1,113 billion) temporal lateralization as shown on the chart before it begins to rise again.
Also using the Fibonacci extension in this chart we end up with sa first target around $2.640 billion. In this case, the room for progress is even greater (around $1,500 billion), which would lead to a particularly significant increase (x2.5) in this asset class.
Bitcoin’s dominance continues its free fall against cryptocurrencies
The cryptocurrency king appears to be developing as a continuation of the change in momentum that occurred last week. After several months of consecutive gains, Bitcoin found itself around 57% dominance (after rejecting 60%), allowing altcoins to gain a relatively favorable context. However, this the evolution of the cryptocurrency king’s dominance is currently highlighted by an acceleration of the decline.
We are approaching 55% dominance heading full speed towards 53% dominancea former zone that was resistance before acting as support in 2024. This zone appears to be in confluence with the EMA200 as well as the MA100, making it a very important threshold to watch closely over the next few weeks.
In order for altcoins to continue to benefit from a sufficiently interesting context, they will have to prolong this phase of overperformance facing the cryptocurrency king to siphon off some of the liquidity. If this area shown in green breaks down, the price should be headed for 48.92% dominance, which is an ideal scenario to exit the rest of the market with much more upside.
Ethereum Extends Its Bounce
There was an expected increase of several percent on the ETH/BTC pair, which made it possible trend reversal on a weekly time unit with the creation of a new vertex. At the 0.04 BTC gates, if the pair continues its rise to break free from it, the price should eventually head towards 0.048 BTC and 0.055 BTC. Ethereum is currently around $4,000, we are only at the beginning of a trend reversal. In this context, it is only a matter of time before a new ATH occurs, especially if Bitcoin sees its dominance weaken in the coming weeks.
In terms of the total capitalization of the DeFi sector, the price is rising and approaching its ATH. Next week’s analysis will be the perfect opportunity to look into it. If Ethereum actually manages to confirm the development that is taking place regarding liquidity movement and altcoins make a new high at TOTAL3, the beginning of 2025 could be particularly interesting for very specific altcoin sectors.
This market analysis allows us to have a a relatively clear vision of market dynamics. Currently, the bias is strongly bullish and has no reason to become bearish at this time. Ethereum is finally coming back strong and Bitcoin’s dominance is experiencing a difficult period for the first time in two years. In the current context, the altseason is in full swing and altcoins are seeing gains of more than double digits. However, the momentum is not yet at its highest potentialas we might find out in 2021 with ATH across the market. Let’s see what he has in store for us this end of the year. keep a close eye on weekly deadlines.
