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Uncertainty in the Market As Stagnation Continues: Which Way is Bitcoin Going?

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From yesterday’s open at around $131,681,788,701 the evaluation of the cryptocurrency market cap has decreased at first as it came down to around $129,364,926,613 at its lowest point today but since then the evaluation has started increasing again and is currently close to the levels of yesterday’s open.

Bitcoin BTC Price

On the global chart, you can see that the evaluation has been hovering around the lower levels of the resistance zone it entered and has created an ascending structure which for now looks like a channel but is currently retesting it support line which is why we might see a breakout soon.

The market is mixed in color today as the sideways movement continues. The average percentage of change among the top 100 coins in the last 24 hours is insignificant as it is ranging around 1.4%.

Bitcoin’s market dominance has also been hovering around the same levels from Sunday when it increased from its lowest point at 51.22% to around 52.48% from where it decreased slightly and to around 52%.

Bitcoin Price BTC/USD

From yesterday’s open at $3932 the price of Bitcoin has been moving sideways, decreasing at first to $3880 at its lowest point today which was a decrease of 1.33% but started increasing after and is currently only around the same level as on yesterday’s open as its currently sitting at $3910.

On the 15 min chart, we can see that the price action created two ascending channels, one being the upper major one and the other being a minor one inside it out of which its support level is the same. The price is currently interacting with that support level and is struggling to stay there which is why we may see a breakout to the downside now, but if that happens I wouldn’t expect a breakout below the bold black line, as I am expecting one more increase before a trend continuation.

The price has started decreasing on Sunday as the Intermediate Y wave ended on its 5th wave so the decrease made is most likely the first move out of the next impulsive move that started to the downside. As we are now seeing the ascending channel after the mentioned decrease it could be interpreted as a corrective/consolidative range in which the buyers and the sellers’ are getting closer to each other, and as the moves are getting smaller and smaller we are to soon see a decisive move.

The most optimal scenario I would be looking to see is a retest of the horizontal resistance level at $3994.4 before we see a breakout to the downside. The wave structure definitely looks corrective but the direction of a breakout is still not very clear.

If we are seeing the start of the impulsive move as a trend continuation after the Intermediate WXY correction ended in theory the price could go up to the level of the Sunday’s high on its second wave so we might see the price increase like we have seen in the case of Ripple due to Coinbase listing before the price starts its 3rd and the most powerful wave to the downside.

This sideways movement could continue if the WXY correction gets prolonged by two more waves in which case what we are seeing now developing would be the second wave X, but considering the momentum by the sellers’ shown on Sunday I don’t believe that is likely.

Zooming into the 4-hour chart you can see my labeling on the fractals that were seen on the Intermediate X wave and why this ascending channel isn’t giving away many clues on the potential direction of the next major move. Either it could be the start of a minor purple area fractal, ending with a lower high before continuing its downward trajectory or it could end as a dark green minor fractal which was seen after the first decrease was made and meant that another smaller decrease should be expected.

The Sunday’s decree would definitely be the aruze area fractal and considering what has been said in this analysis my primary outlook is that this is only a minor corrective structure before one more move to the downside which will ends as a breakout from the falling wedge territory in which the price is currently but we could very well see the price increase from here before that expected decrease would be made.

Market sentiment

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

Pivot points

S3 3755.8
S2 3827.1
S1 3862.7
P 3898.4
R1 3934.0
R2 3969.7
R3 4041.0

Conclusion

In the upcoming period, we are going to see if the market is heading for a prolonged correction or for a trend continuation after the correction ended.

The current ascending channel looks corrective so in either way I would be expecting to see the price of Bitcoin lower than the current levels but it is still unclear whether or not the price is going to increase at first as the corrective structure plays out as the fractal, like seen in the Intermediate X wave stage of the WXY correction.

The post Uncertainty in the Market As Stagnation Continues: Which Way is Bitcoin Going? appeared first on Blockonomi.

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