How is the cryptocurrency market entering the critical week?
This week will undoubtedly be a very important week for all markets.
On Wednesday, annual inflation data will be released in the US and in the evening of the same day, we will learn the Fed’s interest rate decision.
At 03.30 p.m. the inflation data will be released and at 09.00 p.m. the Fed’s interest rate decision will be announced.
While the expectation for inflation is 3.4 (previous 3.4), the Fed is expected to keep the policy rate unchanged in the evening.
What about Bitcoin?
Bitcoin continues to move above the critical $60,000 level.
When analyzed on a weekly timeframe, Bitcoin continues to move above the blue zone.
In an environment where the Fed has not yet changed its monetary policy, the current outlook can of course be considered positive.
The range of $71 – $73 thousand has not been exceeded for several months. This region must be crossed for the continuation of the brisk rise.
Giant companies such as BlackRock and Fidelity continue to invest in Bitcoin.
This was one of the important factors that kept the price strong in this process.
Even if the data comes within expectations this week, it may appetize buyers.
In this sense, our ears will of course be on Wednesday in the first place.
So, what about the altcoin market?
There is currently no environment for altcoins to break Bitcoin dominance as spot ETH ETFs are yet to open for trading.
Bitcoin dominance continues to move close to the yellow major resistance zone (57 – 58%).
Let’s not forget that there is a possibility of a retest of this zone.
The opening of ETFs would be the most important development that could break the uptrend in Bitcoin dominance.
If the altcoin market is revitalized with the possible large demand, the 54 level may be retested in the first place. If we see companies receiving steady investment, the first important target in the medium term will be 51.
When these two levels are broken down, the environment will be more ready for a much steeper decline.
Since Ethereum’s market capitalization is very high, strong rallies will be able to feed the altcoin market in the medium term.
Altcoin Market Cap is not there yet!
Altcoin Market Cap is yet to break through the major resistance zone.
The strong stance of BNB and ETH over the past weeks has brought us closer to the yellow major resistance zone again.
When the Altcoin Market Cap settles above the yellow zone, altcoins will be much freer and uncontrolled rises will be more easily seen. That’s why this critical zone plays a key role.
This zone was also tested in March and failed to be crossed.
Investors have been witnessing for years that when major resistance zones are crossed on the weekly timeframe, the products start to strengthen simultaneously. Of course, this doesn’t happen by chance.
The cryptocurrency market has its own dynamics, and those who act accordingly can survive or win in this choppy sea much more easily.
That’s why investors should not wait until the yellow zone is crossed in the Altcoin Market Cap.
You can see from both Altcoin Market Cap and Bitcoin Dominance that the opening of Spot ETH ETFs will also feed the altcoin market.
We will keep our eyes on Wednesday first, and then we will follow the developments regarding the opening of ETFs.