EW Analysis: Crypto Is Selling-Off; Btc At 6-7K Sup. Zone
Updated
Hello traders!
Today we will talk about cryptocurrencies and their current decline.
Let's start with Bitcoin against the ALTs dominance. BTC was losing its dominance against the ALTs since the beginning of September that can be clearly seen in the BTC.D/OTHER.S chart, but as you can see a decline was corrective only in three waves a-b-c, ideally in wave 4, which means that BTC Dominance could be back in the game for wave 5 soon, especially if we consider that strong a=c and base channel resistance line support area.
Due to a lost of BTC dominance, BTCUSD just hit new lows again compared to some other ALTs like NEOUSD and ZRXUSD, which were stronger in the last couple of weeks. However, we still see a corrective W-X-Y structure from the highs on Bitcoin and it's still trading around important 61,8% Fibonacci area, so we would not be surprised if we will see a bounce soon, maybe already here around 7000-6000 support area, especially if we take a look on NEO and ZRX.
In the Crypto market we always have to respect correlations. And what we see is that both, NEO and ZRX can be unfolding pretty clear bullish setup here with a strong five-wave rally away from the lows followed by a three-wave a-b-c corrective pullback that can stop right here around important 61,8% Fibonacci support area and channel support line.
Well, what we want to point out is despite that current sell-off in the Crypto market, we still see limited downside with a strong support levels and potential bullish reversals. Also, if we are right and BTC dominance comes back, then BTC could be the strongest cryptocurrency again, which means that ALTs against the BTC pairs (XXX/BTC) may continue even lower.
This is just how we currently see the Crypto market; Crypto market can see a bounce and a recovery sagain, but only against the USD, while XXX/BTC will stay mostly bearish or sideways.
If you like what we do, please like and share.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Today we will talk about cryptocurrencies and their current decline.
Let's start with Bitcoin against the ALTs dominance. BTC was losing its dominance against the ALTs since the beginning of September that can be clearly seen in the BTC.D/OTHER.S chart, but as you can see a decline was corrective only in three waves a-b-c, ideally in wave 4, which means that BTC Dominance could be back in the game for wave 5 soon, especially if we consider that strong a=c and base channel resistance line support area.
Due to a lost of BTC dominance, BTCUSD just hit new lows again compared to some other ALTs like NEOUSD and ZRXUSD, which were stronger in the last couple of weeks. However, we still see a corrective W-X-Y structure from the highs on Bitcoin and it's still trading around important 61,8% Fibonacci area, so we would not be surprised if we will see a bounce soon, maybe already here around 7000-6000 support area, especially if we take a look on NEO and ZRX.
In the Crypto market we always have to respect correlations. And what we see is that both, NEO and ZRX can be unfolding pretty clear bullish setup here with a strong five-wave rally away from the lows followed by a three-wave a-b-c corrective pullback that can stop right here around important 61,8% Fibonacci support area and channel support line.
Well, what we want to point out is despite that current sell-off in the Crypto market, we still see limited downside with a strong support levels and potential bullish reversals. Also, if we are right and BTC dominance comes back, then BTC could be the strongest cryptocurrency again, which means that ALTs against the BTC pairs (XXX/BTC) may continue even lower.
This is just how we currently see the Crypto market; Crypto market can see a bounce and a recovery sagain, but only against the USD, while XXX/BTC will stay mostly bearish or sideways.
If you like what we do, please like and share.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Note
Traders, as you can see most of traders and analysts are turning bearish after that sharp decline, which is actually a perfect time for reversals, because when everyone turns bearish, it's time for bulls. As you can see, BTC.D/OTHERS.D is still at potential support after a three-wave corrective decline from highs, so bounce and bullish turn with Bitcoin Dominance can be around the corner. One more interesting chart why BTC Dominance may come back and why bullish reversals in the Crypto market may occur is just OTHERS.D (ALTcoin Dominance) chart compared to BTCUSD.
Well, seems like it's heading down to hit December 2017 lows, where BTCUSD made all-time highs. Just look at that potential ending diagonal (wedge pattern), which can be indicating that BTC dominance is coming back soon.
Also, in our opinion this potential rally may actually lasts till BTC halving in May 2020, where everyone will expect even more upside, but the market will probably hit back then. Patience.
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