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Further Upside Expected After Consolidation (Bitcoin & Binance Coin Price Analysis)

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From yesterday’s open at around $131,8B the evaluation of the cryptocurrency market cap has been moving sideways as it encountered resistance at the $135B level.

  • Market Cap: $135,275,862,150
  • 24h Vol: $30,792,119,072
  • BTC Dominance: 51.7%

Binance Coin Price

Looking at the global chart we can see that the evaluation broke out impulsively from the descending channel in which it was correcting since the first increase was made until the 24th of December. Now that the evaluation reached the lower horizontal resistance level from the resistance zone above and has pulled back and is now attempting to go beyond it, we are soon going to see how the interaction will end which will indicate whether or not the market is now heading for a retracement or further upside.

Today the market is in mixed colors with an average percentage of change among top 100 coins in the last 24 hours ranging around 2-3%. The biggest gainers are in double digits like Maker with an increase of 11%, Quant and Binance with 15% and Storj by 18%.

Bitcoin’s market dominance has been decreasing overall but has been stagnating throughout most of the day.

Bitcoin BTC/USD

From yesterday’s open at $4028 the price of Bitcoin has decreased at first to $3951 but again came to $4071, exceeding the prior high and then fell to $3964 making a higher low. But as the price is currently sitting at around $4035 showing signs of weakness from the sellers’ pressure it looks like a lower high will be developed.

The price is still above the $3994.4 horizontal level which is a good sign but the wave structure implies that a retracement is likely soon as the current expanding diagonal is the Minuette 5th wave from the 3rd impulse wave of a higher degree. We might see another increase to the 0.786 Fibonacci level before this 5th wave ends for another interaction with the expanding diagonal’s resistance line which would be the final attempt before exhaustion.

Until now we have seen 3 waves of a higher degree count, and since my primary count got validated and we are likely seeing the 5-wave move to the upside which is the Intermediate Y wave, the 4th wave which corrective in nature should start developing. This means that further increase should be expected and the last 5th wave should start developing whos price target I see fit around the falling wedge of a higher degree resistance line (whose bold black line is the support), inside which territory the price was entered, and the horizontal resistance zone up to $4300.

This price target could change in time as it depends on the depth of the 4 wave’s retracement.

Market sentiment

Bitcoin’s hourly chart technicals are bullish.

Pivot points

S3 3442
S2 3564.5
S1 3620.5
P 3687
R1 3743
R2 3809.5
R3 3932

Binance Coin BNB/USD

Binance coin (BNB) has increased by 19.2% today at its highest point at $11.552 from the levels on which it was on its lowest yesterday at $9.677 when the price was putting pressure on the descending trend line which is the resistance from the falling wedge of a higher degree.


The price is currently sitting at $11.265 above both the falling wedge resistance line and the 0.382 Fibonacci level but has started showing signs of weakness as the moves to the upside are getting smaller and smaller. The wave structure implies that more upside should be expected for the price of Binance coin as the 5 Minor impulse wave hasn’t developed fully, but also that a minor retracement could be taking place very soon, similarly what we have seen in the case of Bitcoin.

In theory, the price could go down to $9.7 level where the 1st Minuette impulse wave is and would fit with the potential interaction with the broken resistance level as a retest for support. Considering the momentum shown I don’t believe that the price would go below the 0.382 Fibonacci level.

Market sentiment

Binance coin is in the buy zone.

Pivot points

S3 8.32
S2 9.35
S1 9.98
P 10.9
R1 11.7
R2 12.32
R3 13.38

The post Further Upside Expected After Consolidation (Bitcoin & Binance Coin Price Analysis) appeared first on Blockonomi.

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