Crypto News

Crypto Market Update: Retracement Has Started But Still Bullish (Bitcoin Price Analysis)

https://ift.tt/2RXhVHe

From yesterday’s highest point at $136B the evaluation of the cryptocurrency market cap has been in a decline and has fallen by approximately 2,5 billion dollars measured to the current levels on which the evaluation is sitting which is at around $133,5B.

  • Market Cap: $133,510,513,335
  • 24h Vol: $28,083,777,172
  • BTC Dominance: 52.0%

Bitcoin Price 2019

On the global chart you can see that the evaluation has encountered strong resistance at the horizontal resistance level and has attempted to go beyond it for two times for now, and as both times ended as a rejection we are now likely to see a retracement for the bullish momentum to cool down and attempt to gain some traction once again. The evaluation is currently in a downward trajectory which is why we could see the start of that retracement today if we are not seeing already.

The market is predominantly in red today with an average percentage of change among top 100 coins in the last 24 hours ranging between 1.53-3.48%.

Bitcoin’s market dominance has been increasing since yesterday as it came from 51.56% at its lowest point yesterday to just little over 52% at its highest point today.

Bitcoin BTC/USD

From yesterday’s high at $4065 the price of Bitcoin has fallen by 1.4% as its currently being traded at $4007. The price went lower today and spiked to the downside at $3922 buy the hourly candle closed above the $3994.4 horizontal support level quickly after. 


On the hourly chart, you can see that the price of Bitcoin made interaction with the 0.786 Fibonacci level as expected yesterday, which triggered another round of selling which made the price retest to horizontal support level and judging by the current price action movement we can say that the support was there for now. I don’t believe that the horizontal support level would hold for much longer as it isn’t significant enough. 

Now that the price has likely ended its impulsive increase a retracement should be expected as either the 4th wave should develop or the 5th wave ended. I don’t believe that the 5th wave ended although there is a possibility which is what we are going to see from the current retracement’s depth. The price action formed an ending diagonal which is the sign of the completion of the impulsive move and can mostly be seen on the end of the 5th wave, so in either way a decrease from here would be logical.

The retracement might have already started as the price made a lower high yesterday (excluding the spike to the upside) so we are likely to see a breakout to the downside from the current expanding triangle.

The most optimal target would be at the bold black line intersection with the 0.5 Fibonacci level but that could only happen if the retracement takes it’s time like it did on the 2nd wave which lasted for more than a week. If not we could see an interaction with the 0.618 Fibonacci level and a proper one with the price retesting it for support on both sides.

If the impulsive move to the upside ended so did the Intermediate Y wave and the WXY correction, which would mean that a trend continuation should start developing impulsively, but the correction could be prolonged by two more waves X and Z in which case new higher highs coud happen before the expected continuation.

As my primary count implies that continuation will start after another increase which would be the end of the Y wave, so depending on the current downside potential I am going to reevaluate my projection.

Market sentiment

Bitcoin is in the sell zone.

Pivot point

S3 3442
S2 3564
S1 3620
P 3687
R1 3743
R2 3809.5
R3 3932.

The post Crypto Market Update: Retracement Has Started But Still Bullish (Bitcoin Price Analysis) appeared first on Blockonomi.



February 21, 2019 at 10:19AM https://blockonomi.com from Blockonomi https://ift.tt/2NhcuS0

Comments