From yesterday’s low at $167,184,000,000 the evaluation of the cryptocurrency market capitalization has started increasing again and came up to $175,324,530,848 at its highest point.
The evaluation has pulled back slightly since then but is hovering around those levels still as it’s trying to keep up the upward trajectory.
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The market is mostly in red due to the previously made decrease we have seen about whose mid range the evaluation has gone back.
The biggest movers are in green as they have increased more in the last 24 hours then they have decreased from yesterday’s open, like Dogecoin which is up by 11.7%, Bitcoin Diamond 12% and Insight Chain with an increase of over 16%.
Bitcoin’s market dominance has fallen to 50.25% at its lowest point today coming from 51.26% on today’s high.
- 1 Bitcoin BTC/USD
- 2 Litecoin LTC/USD
- 3 Conclusion
From its highest point on Wednesday when the price came up to $5336.6 at its highest point, we have seen a decrease of 9.41% yesterday as the price fell to $4834 at its lowest point. Since that low, the price has increased by 5% measured to the highest point today at $5076 but has retraced since then and is currently sitting at around $5049.
Looking at the hourly chart you can see that the price of Bitcoin came up to the 1.618 Fibonacci level again today for a retest of resistance and the resistance was there judging by the wick from the upside on the current hourly candle as well as the one that first came to it.
It looks like a three-wave move to the downside has ended which is why we are seeing a minor uptrend developing but this uptrend could be only a prolongation of the correction that is now taking place after the price increased impulsively.
We could also very well be seeing the start of another increase which is set to surpass the Wednesday’s high if the impulsive move to the upside hasn’t ended so depending on the interaction with the resistance levels below we are to see the potential behind the further price action movement.
If the price continues moving above the 1.618 Fibonacci level I would consider that another increase is coming, but if we see a rejection the most likely scenario would be that the increase ended.
Previously we have seen an ascending channel which could have been the 5th wave out of the five-wave impulse in which case the now seen correctional structure would be the start of the downward movement of a higher degree as the Intermediate Y wave ended.
If this is true then the price of Bitcoin is headed for more downside below the point from which the last increase was made at around $4300 where the significant horizontal resistance point is, and considering that the level got broken with strong momentum a retracement back to those levels for a retest of support would be optimal.
But if the increase hasn’t ended the price of Bitcoin could continue moving to the upside for a one more high in which case I would be expecting an interaction with the $5562 horizontal support level which now serves as resistance and is likely getting interacted with.
Bitcoin’s hourly chart technical indicators are signaling a strong buy.
From Wednesday’s high at $99.55 the price of Litecoin has fallen by 18.25% measured to the lowest point yesterday at $81.38 but since then it started increasing again and has managed to recover by 9.66% as it came up to $89.311
On the hourly chart, you can see that the price of Litecoin started decreasing in a three-wave manner from its highest point on Wednesday and as it ended another minor uptrend has started as we have seen in the case of Bitcoin. As I have counted the sub-wave I believe that the recovery is over or is near completion if we see the 5th wave continue moving to the vicinity of the yesterday’s open level but when it ends I would be expecting another move to the downside.
As the price of Litecoin increased exponentially in a five-wave manner we are now seeing consolidation taking place like expected but as the structure is still developing it is not clear whether or not it is going to be a quick correction before another run up or would this consolidation be the one before the start of a higher degree move to the downside.
We have seen an increase above the significant resistance point which got broken with strong bullish momentum so a pullback for the establishment of support is now needed if the price is to continue moving to the upside but if the increase ended altogether we are could be seeing the start of a trend continuation of a higher degree as this upward movement was correctional.
Litecoin is in the strong buy zone.
The cryptocurrency market has started consolidating after the exponential growth experienced in the past period so we are soon going to see if this run ended or will it continue further.
I believe that it is more likely that the increase has ended but there is a possibility of a further increase if the last wave from the impulsive move to the upside hasn’t ended.
In the case of Bitcoin that further upside movement could bring the price to its next significant resistance point at around $5562 so the room for growth is very small.
This is why now I would be expecting to see a higher degree downside move either in a form of the start of the expected trend continuation as the Intermediate WXY correction ended or the minor retracement before another minor run up.