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Crypto Market Update: Bitcoin (BTC) & Stellar (XLM) Price Analysis

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From yesterday things haven’t changed much on the evaluation of the cryptocurrency market as it is still hovering around the same levels at around $177B.

Crypto Price Update

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Looking at the global chart you can see that at the moment the evaluation is retesting the minor horizontal support level, broken yesterday, for resistance which was already retested and did serves as resistance on the yesterday’s interaction as another minor downfall was made but ended as a higher low which could indicate some bullishness.

Although the evaluation is far from showing bullishness this minor increase could continue moving above the currently seen resistance for a bit longer before another rejection takes place as we are most likely seeing a small correction to the upside after the yesterday’s downfall ended.

Crypto Market Moves

  • The market is in mixed colors today with an insignificant percentage of change among the top 100 coins in the last 24 hours.
  • Out of the highest movers the biggest one is in red with a decrease of 11% and is Maximine Coin, followed by Bitshares with a decrease of 5.19%.
  • Out of those who are in green the biggest movers are ICON with an increase of 9.34% followed by Augur with 7.46%.
  • Bitcoin’s market dominance has also been hovering around the same levels from and is currently sitting around 54.4%.

Bitcoin BTC/USD

From yesterday’s high at $5652.7 the price of Bitcoin has fallen down by 4.04% measured to its lowest point today at $5424.1 and even spiked further down to $5392 but recovered since and is currently sitting at around $5475.

Looking at the 15-min chart you can see that the price of Bitcoin made another interaction with the significant ascending resistance level yesterday which is why it ended as a rejection which propelled the price in downward trajectory again.

As I’ve counted five waves out of the last increase I think that what we are currently seeing could be the start of the higher degree downside movement as this was the completion of the 5th impulse wave to the upside out of the Minute count.

The price action is currently forming and ending diagonal which is a descending one so we could expect to see a minor increase which looks like it already started as the price of Bitcoin came above its resistance level and is currently retesting it for support from the upside, but if the 5th Minute wave ended this upside movement would be only a temporary one as the higher degree correction develops and we see a breakout to the downside from the ascending channel inside whose territory the price has been from 3rd of April.

As the price of Bitcoin increased by 66.1% in one go, coming from $3422.4 on 8th of February until yesterday when it reached $5684 we could have seen the end of the last bullish upswing.

This doesn’t mean that another one isn’t coming as I think that the significant broken support at around $6250 now serving as resistance would get retested by the end of this bullish period, but for now I would be expecting a downtrend which could either be the 4th wave from the higher degree count with one more higher high to go, or the end of the upswing altogether.

Market sentiment

Bitcoin is in the buy zone as indicated by the hourly chart technicals.

Pivot points

  • S3 4384.9
  • S2 4812.8
  • S1 5076.4
  • P 5240.6
  • R1 5504.3
  • R2 5668.5
  • R3 6096.3

Stellar XLM/USD

From Monday’s high at around $0.115 the price of Stellar has decreased by 12.74% measured to the lowest point yesterday at around $0.1. From yesterday’s low, the price came up slightly and is currently sitting at $0.10567.

On the 4-hour chart, we can see that in the case of Stellar the price has definitely ended it last five-wave move to the upside and is now undergoing a three-wave correction to the downside.

This might end as a five-wave move to the downside with the price going lower than projected but the interaction with the significant horizontal support level at $0.0977 is to be expected.

This last five-wave increase to the upside was the Y wave according to my count from the WXY correction that started on 15th of December like in the case of other major cryptocurrencies which could indicate the future potential direction of the market in general as strong correlation is shown and in particular as this is now expected to develop on the Bitcoin’s chart as well.

If we see further downside movement below the significant horizontal support level the price is likely developing the higher degree five-wave move which would be the beginning of the higher degree downtrend which is a trend continuation after the three-wave WXY correction to the upside ended.

There is a possibility that the level would hold in which case the now seen ABC could be the prolongation of the WXY, but considering the momentum shown I don’t believe that’s likely.

Market sentiment

Stellar is in the buy zone as indicated by the hourly chart technicals.

Pivot points

  • S3 0.09586667
  • S2 0.10573667
  • S1 0.11047334
  • P 0.11560667
  • R1 0.12034334
  • R2 0.12547667
  • R3 0.13534667

Conclusion

The prices of the major cryptos are showing signs of weakness as they have encountered strong resistance yesterday which cause another market slump.

This could be an early indication that the downtrend has now started which could either be the long-awaited trend continuation after the three-wave correction to the upside ended or it could be another minor correction before the final increase.

If the price of Bitcoin keeps falling down below the $5368 level we are likely to see a breakout to the downside from the ascending channel with further downside movement ahead, but if the price manages to stay above the $5226 level another higher high could be expected before the end of the bullish upswing.

The price of Stellar is showing the end of the bullish upswing with the price currently experiencing a steep downside movement but it to could be either the prolongation of the same correction with another higher ahead before the end of the correction and for that to be validated we are going to look what happens around $0.1.

If the price manages to stay up above it another increase would be likely but if the price continues moving to the downside below it we are more likely seeing the development of the higher degree impulse to the downside as in that case we are going to see a five-wave move instead of the currently projected three-wave one which is considered to be correctional.

The post Crypto Market Update: Bitcoin (BTC) & Stellar (XLM) Price Analysis appeared first on Blockonomi.

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