After Yesterday’s Fall, The Crypto Market Increases – Where Next?

After Yesterday’s Fall, The Crypto Market Increases – Where Next?

From yesterday’s high at $141,915,423,233 the evaluation of the cryptocurrency market cap has been declining and came down to $138B at its lowest point yesterday. From there the evaluation made some recovery and is currently sitting around $140,5B mark an is in an upward trajectory.

Bitcoin Price BTC

How to Trade Bitcoin with the Haasbot

Looking at the global chart it is still unclear which structure will prevail – either an expanding one or a descending one so could see another increase from here to the vicinity of the prior high as a retest of resistance before a final breakout to the downside. The breakout might already happen if the prevailing structure was descending one.

The market is mostly in green as the evaluation started increasing again today but with a small recovery made the average percentage of change is still very small and is ranging around 2%. The biggest movers are in double-digits like Nuls with an increase of 17%.

Bitcoin’s market dominance has been declining as it came down from 51.19% at its highest point yesterday to 50.7% where it is currently sitting.

Bitcoin Analysis BTC/USD

From yesterday’s high at around $4130 the price of Bitcoin has depreciated by 2.92% coming to $4004 at its lowest point yesterday. Since then we have seen a small recovery as the price currently being traded at $4060 and considering that the price is again in an upward trajectory we could see further recovery today.

On the hourly chart, you can see that the price of Bitcoin fell below the resistance line of the falling wedge but has today went above it again and is currently retesting the ascending trendline which served as support for the resistance. Judging by the last hourly candle the resistance there is present which is why the price is struggling to keep up its upward trajectory.

Since the price started impulsively moving to the downside yesterday this current increase is most likely a minor three-wave correction, and as it looks near completion we are soon going to see the price continuing its down move.

If the price starts moving to the downside from here I would be expecting a proper interaction with the horizontal resistance level as a retest of support which would bring the price of Bitcoin back to around $3994.4 level, but if the price continues moving to the upside a retest of some of the significant resistance points would be expected or even potentially exceeding the prior high.

This could be a possibility if the 4th wave hasn’t ended and we are seeing the continuation of the correction that started after the price spiked above the 0.786 Fibonacci level, although considering the momentum shown yesterday I don’t believe that’s likely.

As the price is currently retesting the horizontal support of the upper range it might be the retest of the resistance I am looking for, so after the interaction ends we shall see the price potential.

In either way, over the weekend I would be expecting to see the price of Bitcoin continuing its downward trajectory as this increase would be a minor correction according to my count.

Market sentiment

Bitcoin is in the buy zone.

Pivot points

S3 3446.4
S2 3743.9
S1 3916.0
P 4041.4
R1 4213.5
R2 4338.9
R3 4636.4

Conclusion

The cryptocurrency market has been declining fast yesterday after some increase has been made and as the price fell below the levels from which the increase started, we can say that the sellers are starting to gain control.

More downside would be expected from here as the price of Bitcoin most likely ended its corrective upswing around the significant resistance area around $4130 so now a move to the downside is expected to play out either as the next corrective structure or an impulsive move.

Depending on the type of the expected decrease we are going to reevaluate the price target levels but I believe that now Bitcoin is heading for its support levels of the current Intermediate correction which could bring the price down to around $3600 area.

Over the weekend I would be expecting more signs of struggle between the buyers and the sellers before finally a decisive move to the downside starts.

The post After Yesterday’s Fall, The Crypto Market Increases – Where Next? appeared first on Blockonomi.

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