From yesterday the cryptocurrency market has started increasing again and has managed to stay above the $135B support. The lowest the evaluation has been was to $134,418,000,000 today from where it started increasing again as it looks like the support was there.
- Market Cap: $137,959,825,055
- 24h Vol: $15,829,569,225
- BTC Dominance: 51.7%
Looking at the global chart you can see clearly that the evaluation retested the horizontal level and has bounced off it, but as the evaluation did this around Christmas as well it is still unclear whether this means the start of another increase or would this end as a fakeout with the evaluation going below the horizontal level at the end. The evaluation is now slightly above $138B which is close to the prior minor high at $138,608,000,000, so we are soon going to see if it goes beyond it or starts pulling back again.
The market is in green with a small average percentage of change as the top 100 coins are ranging in their 25-hour change around 2%. The biggest gainer today is Tron with an increase of 11.5% so far. Meanwhile, Buggyra Coin Zero which experienced an increase of over 80% yesterday is today in red with a decrease of 44%.
Bitcoin’s market dominance has stayed around the same levels as yesterday as its currently hovering around 51.7%.
From yesterday’s open at $4185 the price of Bitcoin has fallen at first and came down to $4088 but is now back around the same levels as on yesterday’s open.
Looking at the hourly chart you can see that the price action has formed an ascending channel in which we are likely seeing a WXYXZ correction in which there is a more sideways movement to be expected before the price finally continues trending downward. The price is currently around the same levels as the prior high so we might see an increase to the bold black line before the X wave starts.
The second X wave, if my count is correct, should end on the horizontal level at $3994 from which the price previously broke out off, to retest it for support, but since this is only a minor significant level the price will likely head up to the level of the prior interaction around $4367 on the Z wave before it goes down again as this would be the end of the Y wave of a higher degree.
The WXYXZ correction is most likely the X wave from a WXY in the trend direction (green) which is why I believe that the correction will be prolonged by two more waves. If that is the case we could see the price of Bitcoin much higher than projected before this move to the downside starts.
Zooming out to the daily chart you can see that my Elliott Wave projection for the more long-term is playing out accordingly. The price is currently in the second X wave stage and will likely recover the price of Bitcoin some more before it ends, but as the Z wave should start afterward more downside is expected for the price of Bitcoin before this bear market ends. The only mistake I made is not calling out the current upward structure as I believed that the price would head down for another low and retest $2926 level which is the most significant horizontal level, but instead it landed on the mid-range of the support zone around $3200 before this correction to the upside started developing. This is why I believe we are going to see a retracement after some sideways movement and then another strong increase to the upside which would lead the price of Bitcoin potentially up to $5500.
But as the price is in a corrective movement after it ends a trend continuation is to be expected with further decrease and news lows ahead.
Bitcoin is in the buy zone.