From yesterday things haven’t changed much for the evaluation of the cryptocurrency market cap as it is slightly lower than the level of yesterdays open but is by 1,3 billion dollars higher than at yesterday’s lowest point which is why today the market is mostly in green.
- Market Cap: $134,530,531,062
- 24h Vol: $23,559,641,265
- BTC Dominance: 51.9%
The evaluation is still inside the horizontal range which is the resistance zone’s lower level and the minor support line, as we have seen an interaction on today’s open. Similarly to what we have seen after the first increase was made, we are now seeing stagnation that is likely serving as a consolidation.
The average percentage of change among top 100 coins is ranging from 1.3-3.4%.
Bitcoins market dominance has also been stagnating and is hovering around 52% level.
Bitcoin Price BTC/USD
From yesterday’s high at $4065 the price of Bitcoin has fallen by 1.8% today measured to its lowest point at $3990, but the price has recovered since and is currently sitting at $4034 which is an overall decrease from yesterday’s open of 0.43%.
Looking at the hourly chart we can see that the price of Bitcoin is now in an ascending channel in which it is consolidating since the last increase was made much like the price action behaved after the first one. Now that the impulsive move has ended we are likely seeing the 4th wave which is corrective in nature and is likely to push the price lower before the last 5th wave starts developing to the upside.
Currently inside the ascending channel, I have counted the first three-wave correction so in theory, we could have seen the correction ended and now the start of the 5th wave, but considering how much the second wave correction lasted and the fact that we are approaching the weekend I believe that we are going to see this correction get prolonged by at least two more corrections – now once to the upside that is currently developing after which the last third countertrend correction would develop, potentially ending on some of the broken resistance levels as to retest them for support.
If this scenario plays out we could see the interaction with the bold black line which was the most significant resistance point to the upside and has broken and retested a couple of times recently in this Intermediate WXY correction out of which the 5-wave impulse is the wave Y.
According to my count, we have still one more upside move before this correction ends, but there is also a possibility that the increase ended if the Minor correction ended sooner than currently labeled in which case the chart would look like below.
On the second chart, you can see that I have moved my count to the left as the Minor correction’s Z wave ended as a three-wave move in which case the current peak would be the end of the 5th impulsive move. This would be my alternative count as my primary accounts for the Z wave is the 5-wave move and the breakout from the falling wedge in which the correction was developing as the first impulsive increase.
Since the price broke the bold black line and entered the territory of the falling wedge of a higher degree I believe that the most logical price progression would be an interaction with its resistance line which is why I would expect another increase before the correction ends.
In either way, after the Y ends I would be expecting more downside for the price of Bitcoin as this was only correctional move before trend continuation which is to the downside.
Over the weekend we could very likely see depreciation in prices or at least more stagnating sideways movement as the market cap evaluation and the chart of Bitcoin which is more than half of the market evaluation is showing the signs of consolidation. This may or may not lead to a further increase but after it ends I would definitely be expecting more downside and a trend continuation for the prices of major cryptocurrencies.
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