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Crypto Market Update: Reversal Soon Expected (Bitcoin, Litecoin, EOS Price Analysis)

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From yesterday open at $113,3B the evaluation of the cryptocurrency market cap has fallen to around the $111B level which is if you remember from my previous post the horizontal support level from the last time the evaluation was around these levels.

  • Market Cap: $112,128,487,983
  • 24h Vol: $16,191,046,465
  • BTC Dominance: 53.4%

Crypto Price Update

Looking at the global chart you can see that the evaluation has started creating an ascending range much like it did the last time and considering that we have seen a decrease prior to that pattern we can say that it is corrective in nature and it indicates consolidation.

The market is mostly in green today as the evaluation has been increasing overall but those who haven’t recovered from yesterday’s drop at the open are still in the red. The average percentage of change among top 100 coins is ranging between 1.9%.

Bitcoin’s market dominance has been decreasing as it came from 53.73% to 53.4% where it is currently sitting.

BTC/USD

From yesterday’s open at $3513 the price of Bitcoin has fallen by 2.9% at its lowest point to $3403 but was only a quick dip as the price came back above the intraday support at $3439. Since then the price has recovered slightly and is currently sitting at $3452 which is at the resistance line of the horizontal range in which the price is consolidating since yesterday’s downfall.

Looking at the hourly chart you can see that the price has fallen to my projected levels but only with a spike and is now undergoing another correction to the upside which is the 4th wave for the last downward move and could come up to the vicinity of the 1th wave ending point at 0.382 Fibonacci level before continue moving down as the final, 5th wave should develop.

We could see the 5th wave ending on the 0 Fibonacci level at the prior low according to the Minuette count, but since the price hasn’t gone below the Minute 3rd wave I believe it will go lower.

In either way, a reversal is on the horizon as the ending point of the Minor Z wave looks closer to completion and it is the Intermediate count wave X which is why the Y wave is expected to launch the price impulsively up as we have seen in the period from 15th till 25th of December.

The target for the ending point of the Z wave would be optimally at $3340 which is the intersection with the falling wedge support line and the horizontal support zone, but it could end any time now as the moves are only getting smaller and smaller I wouldn’t come as a surprise if this happens tomorrow.

Market sentiment

Bitcoin is in the neutral zone as indicated by the hourly chart technical indicators.

Pivot point

S3 3096.6
S2 3320.3
S1 3442.2
P 3544.0
R1 3665.9
R2 3767.7
R3 3991.4

LTC/USD

From yesterday’s open at $34.755 the price of Litecoin has started plummeting down, falling by 5.66% to its lowest point yesterday at $32.774. Since then, the price has gained some upward traction until it reached the ascending channels resistance line at $34.25 which rejected the price and has sent it in a downward trajectory once again as its currently sitting at 33.8 level.

 

Yesterday’s interaction with the ascending channel’s resistance line resulted in a rejection pushing the price strongly below the 0.786 Fibonacci retracement level and below the horizontal resistance zone (interrupted purple lines), which were serving as support on the way up above the 0.786.

Currently, the price is in an upward trajectory and again above the resistance zone but is below the 0.786 Fibonacci level. Previously to the formation of the ascending channel, we have seen an impulsive move to the downside. Hence, the structure inside the channel is corrective in nature and was labeled as a Minute WXYXZ correction. The correction appears to be over and if this is true then the movement that was seen from 3rd of February is the start of another impulsive move to the downside. It has 4 waves buy now so I would be expecting the last one, which would end on the ascending channels support at least.

After this happens another increase would be possible to around the levels of the ending point of the Minor W wave which is at $37.167 but as this move to the upside is corrective a trend continuation would be expected to at least the 0.236 Fibonacci level or even further down if the Minor WXY correction ended and the ascending channel that we are seeing isn’t its prolongation.

Market sentiment

Litecoin is in the buy zone.

Pivot points

S3 23.327
S2 28.510
S1 31.819
P 33.693
R1 37.002
R2 38.876
R3 44.059

EOS/USD

From yesterday’s open at $2.42 the price of EOS has fallen at first in the same manner like the other cryptos and that by only 3.54% to its lowest point at $2.33 which was it’s intraday support from where an increase has been made which led the price to the current levels of at around $2.3742.

 

Looking at the EOS 4-hour chart we can see an interesting development taking place and a possibility that the recovery for this cryptocurrency has already begun. This is possible because the price broke out from the falling wedge resistance line (upper interrupted purple line) but since it came to its upper line and was stopped out there we cannot say definitely that a breakout indeed occurred.

You can also see why I am expecting the scenario that I am on the Litecoin chart as the EOS chart pattern developed the downside move after an ascending channel but as it is still inside of a horizontal range and moving sideways it is hard to say when the ending point would be. We might be seeing the prolongation of the last wave Z in which case the price is likely heading for another interaction with the falling wedge resistance and all of that will be seen from the next expected minor move to the downside (labeled with an orange brush).

The decline is expected to be at the intersection between the uptrend support line and the falling wedge resistance line which is going to be retested for support if the price want to break out from the wedge on the upside, so depending on the support there we are going to see which scenario gets validated – if it holds then there is a higher probability that we are seeing the start of the impulsive move to the upside which would lead to the price recovery but if it doesn’t then the interaction with the falling wedge support before the expected increase would be more likely.

Market sentiment

EOS hourly chart technical indicators are signaling a sell.

Pivot points

S3 1.7631
S2 2.0751
S1 2.2792
P 2.3871
R1 2.5912
R2 2.6991
R3 3.0111

The post Crypto Market Update: Reversal Soon Expected (Bitcoin, Litecoin, EOS Price Analysis) appeared first on Blockonomi.



February 07, 2019 at 11:08AM https://blockonomi.com from Blockonomi http://bit.ly/2UM9q2N

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