Loading

wait a moment

Bitcoin & Bitcoin Cash Price Correcting: Where are They Headed Next?

bitcoin social trading

From yesterday’s high at $185,255,258,000 we have seen a decrease of around 15,6 billion dollars as the evaluation of the cryptocurrency market cap fell down to $169,638,110,280 at its lowest point today.

Since today’s low, we have seen a slight increase to $175,524,000,000 which was today’s high but the evaluation has started moving sideways retesting today’s low and going back to the high levels again, currently sitting around $173,535,057,016.

Bitcoin Price

Trade Automatically with 3Commas Bot

On the global chart, we can see that the evaluation made the last increase in an ascending channel which was yesterday when the price reached the mentioned high level and started moving down fast as the majority of the decrease was made in a matter of hours.

The market is in mixed colors today as some of the cryptos increased more than the decrease they have experienced in the last 24 hours.

Bitcoin’s market dominance has been moving sideways as well like the movement seen now on the evaluation on the global chart hovering around 50.7% level.

Bitcoin BTC/USD

From yesterday’s high at $5331 the price of Bitcoin has started decreasing and has spiked down to $4842 at its lowest point today which was a decrease of 9.23%, but the price recovered shortly and came up above the $4970.5 which is a minor horizontal support level today.

Currently, we are seeing the price attempting to start a minor recovery and is in a slightly upward trajectory but as it interacted with the 1.618 Fibonacci level and was rejected there I don’t believe that the upward movement would continue for much longer.

On the hourly chart, you can see that the price action formed an ascending channel until yesterday when a spiked above the significant resistance has been made, entering the seller’s territory above the still unconfirmed ascending channel’s resistance level and the 1.618 Fibonacci level.

The price made a quick spike above the significant resistance and as it entered the zone above which the seller’s territory is most likely located, the selling was activated. The seller’s pressure pushed the price lower which is why we have seen a 9.19% pullback from yesterday’s high to today’s spike to the downside.

After the initial spike down a corrective increase took place in what appears to be a three wave move that ended as an interaction with the Fibonacci level that serves as support, setting the price into a downward trajectory again.

This could be the start of another downfall like we have seen from yesterday’s high which is the A wave of an ABC correction now likely developing which is why a move with a similar momentum to the downside is now expected.

If we have seen the end of the five-wave move to the upside, this current downside movement could be the start of a higher degree impulsive move so the price action could develop in a five-wave manner instead of the projected three-wave correction. If this would occur we are to see further downside then the lower Fibonacci level at $4685.

Market sentiment

Bitcoin’s hourly chart technical indicators are signaling a buy.

Pivot points 

S3 3562.7
S2 3833.7
S1 3999.4
P 4104.7
R1 4270.4
R2 4375.7
R3 4646.7

Bitcoin Cash BCH/USD

Yesterday, the price of Bitcoin Cash was sitting at $351.3 at its highest spike, from where we have seen a decrease of 17.6% measured to the level on which the price found support today a couple of times which is at $289.5. The price spiked even further down, to $266 but an immediate recovery has been made above the mentioned level which serves as horizontal support today.

On the hourly chart, you can see that the price has started a retracement after reaching its most upper resistance levels around the still unconfirmed ascending channels resistance as well as the horizontal support level at around $317 which serves as resistance. The price has even gone slightly above those significant resistance points but as it entered the seller’s territory an immediate pullback occurred below the mentioned levels.

This pullback could be an early sign of a top similar to what we have seen after the Intermediate W wave ended with a huge spike before the price started moving to the downside in a corrective manner. As I have counted five waves I think the increase has ended although there could be further upside movements if the 5th wave hasn’t ended.

Now that the price is starting to show signs of the momentum slowing down we are most likely to see some corrective consolidation that could push the price back to retest the ascending channels resistance levels again before the interaction setting the price for more downside movement.

Market sentiment 

Bitcoin Cash is in the buy zone.

Pivot points

S3 48.77
S2 101.49
S1 135.22
P 154.21
R1 187.94
R2 206.93
R3 259.65

Conclusion

The cryptocurrency market has experienced an increase with strong momentum from Tuesday, but the increase even though strong was short-lived as it has halted today.

As the increase was exponential the un-sustainability behind it is evident so now that it has ended I would be expecting a strong downfall. There might be another higher high if the 5th wave for the impulsive move hasn’t been developed but the charts are implying that the prices have toped which is why now we are most likely seeing the start of the expected down move.

If the Intermediate WXY correction ended this downward move could be the expected trend continuation in which case we are starting to enter the last bearish stage of the bear market with new lows ahead, but it could also be only a small retracement before further correctional movement.

The post Bitcoin & Bitcoin Cash Price Correcting: Where are They Headed Next? appeared first on Blockonomi.

start trading binary options