Technical analysis of Bitcoin and Ethereum

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The cryptocurrency market is enjoying a very positive moment, with the Fear&Greed Index scoring 55 points, the first ‘greed’ signal since April 2022. It’s a promising signal after months of fluctuating between fear and neutrality, confirming a promising start to the year for cryptocurrencies.

In less than a month, the capitalization of cryptocurrencies managed to recover more than 30%, from $797 billion at the end of 2022 to around $1,050 billion today.

Most of the credit for this increase went to Bitcoin, which surged above $23,000, reclaiming its August 2021 prices and erasing the decline caused by the FTX crisis.

Ethereum, on the other hand, is back to early November 2022 highs at $1,600, retaining an 18% market share.

Altcoins are also doing well, with some of the biggest and best known such as Solana (SOL) and Decentraland (MANA) each gaining more than 120% since the start of the month. Over the past week, all of the top 50 cryptocurrencies by capitalization are on course to close with gains.

In particular, if Sunday night’s close confirmed current levels, it would be the fourth consecutive weekly close above par for Bitcoin, an event that has not happened since August 2021.

Also of note is the rise of XRP, a cryptocurrency launched in 2012, which has recovered 20% since the start of the new year, with current prices above $0.40 per token, allowing it to climb back to the top. 6th position in the global crypto capitalization ranking.

However, the company behind XRP, Ripple Labs, is engaged in a legal dispute with the US SEC, which opposes the XRP token as collateral, and the final ruling is expected to be released in the coming weeks.

Finally, the Aptos (APT) token is worth mentioning, which is posting another triple-digit weekly rise, gaining more than 400% year-to-date and taking the top spot among the best risers of the month. The Aptos blockchain was created in 2021 by a team of former developers from Project Diem (a payment system dreamed up by Facebook in 2019) who decided to use their experience in building a decentralized and easily accessible payment network. scalable.

Last week, the price of APT broke above $20 for the first time. When it opened on January 1, the price of APT was $3.4 per token.

Bitcoin (BTC)

Despite slowing its rise, the price of BTC remains firmly above $22,500. Signal of a possible consolidation which will have to find confirmation until the beginning of next week.

If confirmed, the current levels will become the basis of a valid support to store for the coming weeks while waiting to revisit the historical resistance level of $25,500.

Otherwise, the decline should not extend below $20,500 so as not to jeopardize the excellent work accomplished since the beginning of the year.

Ethereum (ETH)

The queen of altcoins fails to keep up with BTC and stumbles with prices falling back below $1,600 in recent hours.

It is important that ETH goes through the weekend unscathed with prices above $1,500 or else the bullish technical structure that started in early January will deteriorate.

Holding $1,500 in the next few days of the week could become the stepping stone to overcome $1,680, resistance that coincides with recent highs and early November.

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