In the last seven days, the cryptocurrency market has recovered from a nearly $600 million downtrend, pushing the Bitcoin price closer to pre-$45,000 decline levels. Additionally, altcoins have made notable gains but have departed Bitcoin’s path due to rising BTC dominance. While major altcoins have failed to fully benefit from the market recovery, strong performers such as Celestia, Arbitrum and Sei have experienced significant price gains this week and will they be able to continue their rise next week?
Decrease in Altcoin Dominance as Bitcoin’s Influence Increases
Although Bitcoin and various altcoins have rebounded from their declines, there is a noticeable difference in their dominance trends. According to the latest data, Bitcoin’s dominance has increased steadily over the past week, reaching 53.6% with minimal bearish volatility. In contrast, altcoins’ dominance has been on a downward trend, reaching a weekly low of 12.1%.
Interestingly, before the crash on January 3, the altcoin market was approaching a significant level as the index traded at 69, its highest level in more than a year. The start of the altcoin season is usually signaled when this metric exceeds the 75 level. However, since that peak, the index has trended downwards and is currently trading at 59, reducing the likelihood of a strong bull run in the market ahead of the SEC’s decision on the spot Bitcoin ETF.
Celestia (TIA) Price Analysis
Celestia has been showing a consolidated uptrend lately, but the price has remained at around $14. However, according to the analysis, a positive sign is that the price constantly remains above the 50% Fibonacci retracement level of the current price, which can give hope for the cryptocurrency.
The bullish sentiment is further supported by the all-time high recorded on January 5, with both the EMA20 and the Relative Strength Index (RSI) pointing to further upside. However, rejections at resistances around $14-17 could dampen any bullish reversal.
If the price holds above the 20-day EMA, buyers may be able to push TIA price towards the important resistance level at $17. Exceeding this level could pave the way for a new peak for the altcoin next week.
Arbitrum (ARB) Price Analysis
Arbitrum price broke below the 20-day Exponential Moving Average (EMA), but the bears failed to secure a close below the critical support. Currently, investors are strongly defending the ascending support line.
In the coming hours, sellers may try to test the support line and a break below could result in long liquidations. However, bulls are targeting a recovery above the EMA20 trend line as buying pressure is strong. A rise above the 20-day EMA could increase buying pressure and have a chance to push the ARB price above $2.1 next week.
Sei (SEI) Price Analysis
Although Sei price has been in an ascending channel pattern for the past few days, it faced a rejection at $0.88. Currently, the price is trading below the EMA20 and the RSI is holding below the middle line, while sellers may cause a retest of the support line.
If the bulls sustain the price above the moving averages, buyers could move towards the $0.88 level. In such a case, there may be a possibility of an increase towards $1 next week.