Yesterday the evaluation of the cryptocurrency market cap was sitting around $177B at its highest point. From there we have seen a decrease in the market as the evaluation started moving to the downside and came to $170,53B at its lowest point yesterday.
Since the start of the day, the evaluation has been on the rise again but has managed to recover only to $173,531 before another decrease has been made.
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Looking at the global chart, we can see that the wave structure has developed 3 waves from yesterday’s low. This could mean that the three-wave correction ended which would imply that the now seen decrease is the start of another downside movement like we have seen yesterday, but since the evaluation found support around the vicinity of the 1st wave’s ending point it could be the 4th wave out of the five-wave move to the upside.
If the evaluation continues moving to the downside and enters the territory of the 2nd wave it would validate the first scenario which I believe is more likely considering the market context.
- The market is in red mostly today with a small average percentage of change in the last 24 hours, as its mostly ranging around 1.3%.
- The biggest loser is Bitcoin SV with a decrease of over 20% due to the fundamentals (Binance delisting), while the majority of the once that are in red are concentrated around 5.8%.
- Bitcoin’s market dominance has been hovering still around 52% as the market is moving sideways from 11th of April.
Bitcoin Price BTC/USD
From yesterday’s high at the price of Bitcoin has decreased by 4.58% measured to today’s low at around which was only a quick spike as the hourly candle closed at $5031. Since then the price has made a slight recovery and is currently in an upward trajectory sitting at $5106.6.
Yesterday the price of Bitcoin was sitting around $5222 at its highest point when an interaction has been made with the lower interrupted line which is the unconfirmed resistance from the presumed ascending channel of a higher degree.
As the price got rejected by the resistance found it started decreasing with strong momentum and came down today to $4980 at its lowest spike breaking the support from the ascending channel in which the price action corrected from 3rd of April when the parabolic increase ended.
The hourly candle closed above the $5k mark but started experiencing sellers pressure around the minor horizontal support level from the upper range.
As a breakout from the ascending channel occurred the scenario in which the increase seen from 12th of April was impulsive has been invalidated, making the primary one bearish.
As now I am positively sure that the increase seen from 5th till 10th of April was corrective as well and not the 5th wave truncation I think that we are seeing the correctional continuation which is the 4th wave out of the higher degree impulse wave to the upside.
This indicates that more downside should be expected now that the support from the ascending channel got broken with the price of Bitcoin potentially falling down to the first resistance point to the upside which would now most likely serve as a support and is inside the $4800 zone.
Last week the price of Bitcoin experienced sideways movement from Monday until another spike to the upside was made to $5483.5 on Wednesday but straight after the price started plummeting down with strong momentum and made a downfall of around 10% in one go as it came down to $4935.7 on Friday.
This downfall could have been the third wave from the presumed WXY correction inside the ascending channel but as the channel got broken I am now assuming that the downfall was the first wave out of the third correctional structure in particular as it was made in a five-wave manner which could be the A wave, and as the following structure ended as a three-wave increase it has validated the B wave.
This means that now we are most likely seeing the development of the C wave from the third correction which will end as a Y wave of a higher degree and will be a correction before another and final move to the upside as the 5th impulse wave should start developing.
Bitcoin is in the sell zone.
- S3 4068.9
- S2 4622.2
- S1 4862.9
- P 5175.5
- R1 5416.2
- R2 5728.8
- R3 6282.1
The cryptocurrency market has experienced another decrease in the last 24 hours which hasn’t been as significant in magnitude as it was in its character as it pointed out that more downside should be expected due to the fact it entered the prior low territory which invalidated the possibility of the prior increase being impulsive.
This is most likely the continuation of the correction which started on Wednesday, April 3rd which is now more downside would be expected.
This correction is considered to be the 4th wave of a higher degree impulse which is why after it ends a final increase would be expected before a higher degree to the downside starts.
This could lead the price of Bitcoin down to $4800 zone after which an increase above $5500 should occur.