From yesterday’s high at around $186,217,565,764 the evaluation of the cryptocurrency market cap has decreased by around 16 billion dollars as it fell to $169,764,489,119 at its lowest point today but has stayed above the $170B mark as it found some temporary support.
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On the global chart, you can see that the evaluation broke the minor ascending structure with strong momentum and fell close to the levels of the prior low but slightly higher, which could end as a higher low if the market participants offer to increase the buying activity in the following period.
The sellers are looking in control which is why the buying activity could shortly be overruled as another round of selling would commence.
- The market is in red with an average percentage of change concentrated around 7% for the major and around 11% for the others among the top 100 coins.
- The biggest losers are Loopring with a decrease of 15.82%, followed by Nuls, WaykiChain, Waltonchain, and IOST which are around 14.59%.
Bitcoin’s market dominance has, of course, increased as it always does when the market confidence diminishes and is currently sitting at around 52% and reached 52.33% at its highest point today, coming from yesterday’s low at 50.79%.
Bitcoin Analysis BTC/USD
From yesterday’s high at $5481, the price of Bitcoin has decreased by 8.8% measure to the lowest point the price has been which is at $4999.3. The price is currently sitting at around $5078 as the price found support and started to move to the upside again.
The price has started falling down fast since yesterday’s high as the majority of the decrease occurred in a matter of hours.
The price found support on what appears to be an ascending triangle or a channel which was confirmed now after the price decrease has been stopped out and has reversed direction.
The price came up to its resistance level on yesterday’s high and since the interaction ended as a rejection its upper level was confirmed at first.
This wave structure confirmed that the previous increase was corrective and not the 5th wave truncation from the Minute count which means that the current downside movement is the part of the same correctional structure from last Wednesday when the first ABC correction to the downside occurred.
As three ABC corrections ended and formed an ascending triangle I am now considering that this structure is the 4th wave of the Minute count which means that another higher high is to be expected next and a breakout to the upside from the triangle.
If we see another increase, the price of Bitcoin is likely headed to some of the significant horizontal resistance levels out of which the most significant one is at $6256.
There could be a possibility that the 5th wave ended last week on Wednesday when the price came up to $5338 in which case this last five-wave decrease could be the start of a higher degree impulse wave to the downside.
But looking at the 4-hour chart you can see why I think the increase would continue further before we see the start of a higher degree impulse wave to the downside in which case the projected scenario would look like this:
Zooming out on to the 4-hour chart you can see the significance behind the horizontal resistance at $6256, as it was serving as a strong support point and the level which was broken with strong momentum and the price plummeted down by just over 50%.
This ascending triangle which has been formed by the last corrective movement is most likely is as I said considered to be the 4th wave of the Minute count.
If another higher high develops from here it might not be the end of the increase that is accounted as the Minor five-wave impulse that started on 7th February, so we might not see an interaction with the $6256 level just yet, but instead an interaction with the lower resistance level at $5806 for the end of the 3rd Minor wave.
If we are seeing the five wave impulse from 7th of February a higher degree downside movement would occur that could lead the price of Bitcoin back to the broken resistance level at around $4300 which was never retested after the price impulsively broke out from the lower range last week on Tuesday, and in particular because the 4th wave could end around the vicinity of the 1st wave’s ending point.
Another and the last increase would be expected from there if the scenario plays out accordingly which would be the 5th wave out of the Minor degree impulse that would lead the price to the mentioned significant support level now serving as resistance at around $6256 or even slightly higher.
Bitcoin is in the sell zone with the moving averages signaling a strong one.
- S3 2427.2
- S2 3638.7
- S1 4364.9
- P 4850.2
- R1 5576.4
- R2 6061.7
- R3 7273.2
The price of Bitcoin and the cryptocurrency market, in general, has experienced a decrease in the last 24 hours which could be a minor retracement after another higher high after which a major retracement would be expected, or could be the start of the expected downtrend.
This is why if the price continues moving below the currently found support levels at around $5000 the likelihood of the starting downtrend would increase, and if the price continues moving back to the upside and manages to get back inside the territory of resistance zone of a higher degree ascending channel and finds support there again around its lower level the likelihood of another higher high would increase.
The post Bitcoin BTC/USD Price: Drop Backs Back to $5k but Decrease Could Be Correctional appeared first on Blockonomi.