Over the weekend the evaluation of the cryptocurrency market cap has been hovering around $120B level but finally started moving to the downside today and went from around $119B on today’s open to $113,737,150,331 at its lowest point today which is a decrease of just slightly above 6,2 billion dollars in about 12 hours.
- Market Cap: $113,754,188,326
- 24h Vol: $18,684,445,935
- BTC Dominance: 53.4%
Looking at the global chart you can see that the evaluation broke the support level from the descending triangle in which it was correcting and is currently on its lowest since the start of the year, and since it is in a downward trajectory it is getting closer to the lowest it has been since the start of the bear market which is at $100,865,734,596. A lower leg pattern has been formed indicating a temporary stop before more downside as the cluster looks bearish.
Zooming in further into the cluster you can see that another descending triangle has been formed which could be interpreted as a bearish pennant – a trend continuation pattern. The wave structure looks like a five-wave sideways correction so this implies that from here a another move to the downside is to be expected and considering that the evaluation is getting close the the completion of the correction and the apex of the descending triangle we are likely going to see that move play out today.
Bitcoin’s market dominance has increased from 52.48% on yesterday’s open to 53.4% where it is currently sitting. The evaluation of the Bitcoin’s market dominance has broken its resistance levels from 28th of December but is still inside the corrective range.
Consequently the market is in red with an average percentage of change in the last 24 hours ranging from 3.24%- 6.8%. The biggest losers are in double digits like Stellar with a decrease of 10.77%, IOTA 10.76%, Bitcoin Gold 14.26% while Holochain is in green with an increase of 13.82%, Pundi X 18%.
Bitcoin Price Analysis BTC/USD
Over the weekend the price of Bitcoin has increased slightly as expected and came up to $3750 at its highest point on Saturday. From there the price started dropping fast since it encountered resistance and a spike up was left on the hourly candle closing at $3705. After the spike activated selling orders the sellers started chasing the price and the momentum caught traction which lead to the decrease in price by 5.82% measured to the current level on which Bitcoin is being traded which is at $3492.
Looking at the hourly chart you can see that the mentioned spike was the projected Y wave from a Minuette WXY correction, which is why after it ended a move to the downside was expected which is what happened. The impulsive move led to a breakout from the prior horizontal support of the range in which the price was correcting and currently we are seeing a cluster forming around the next horizontal support level in line which is the 0.236 Fibonacci level.
Judging by the wave structure the move to the downside hasn’t ended but is now started its 4th stage which is corrective in nature and is only logical that this occurred around the 0.236 Fibonacci level since it is to serve as a support point. The price is likely heading down a bit further as the 5th wave should start developing after this minor halt and will most likely end on the lower purple interrupter line which is the support from a descending wedge in which the price of Bitcoin is undergoing a WXYXZ correction of a Minor degree count.
The end of this Minuette 12345 impulse wave could be the end of the mentioned Minor WXYXZ correction so It would only be natural for the Z wave to end on the support line which was formed by the price action in the undergone correction. The end of the Z wave would be the end of the Intermediate wave X from a WXY correction that is in play from the 15th of December when the price of Bitcoin started recovering from $3229 and came up to $4374 on 24th of December. This increase is considered to the be the W wave from the Intermediate count, so after this Minor Z wave ends it would be the end of the X wave which means that another Y wave to the upside is coming next.
The target price of the Y wave is hard to call out but possibly we are going to see the interaction with bold black line which is the most significant resistance line to the upside since it was the most significant downtrend support line and was previously broken out of to the downside and has been retested on the W wave and it ended as a fast rejection. The Intermediate Y wave length will depend on the X wave ending point so the lower the ending point the lower the target, which correlates with the expected interaction with the resistance from the prior downtrend support as it is lowering in time.
The Z wave might not end on the current down move as it could only be a lower degree move from the second wave X which would in that case mean that it hasn’t ended and that the Z wave hasn’t started. In this scenario the next move to the upside would be the final 5th corrective wave of a Minute degree and the end of the Minor X wave so what we have seen today is actually the prolongation of the previous correction.
If the price doesn’t go lower than the current levels and doesn’t go the to the lower interrupted purple line which is the descending wedge support line, but instead starts increasing from here with a slow momentum I will consider that that the second scenario is in play, but if the price continues lower from here and interacts with the support level quickly and that interaction sets it off to another impulsive move to the upside with strong momentum I would consider that the first scenario is more likely in play and that the Intermediate Y wave started.