There haven’t been many big changes in the Crypto-currency markets. Several cryptos are enjoying a corrective recovery that is still in progress, so be aware of limited rise.
That said, we need to watch out for more weakness ahead.
The main reason for more downside pressure is that we can see risk-off sentiment in full swing, as stock markets are massively down. This can easily take the Crypto market lower, especially Crypto related stocks like Galaxy Digital Holdings. Back in October, I noticed a corrective rally in wave B, and now its heading sharply lower. If we see a decisively broken 28 level and channel support line, then we could be easily headed much lower, maybe even back to June lows.
With current sharp rebound from the intraday lows, Bitcoin (BTCUSD) looks to have a completed Elliott wave »v« of A/1. So, we can now expect a three-wave a-b-c pullback in wave B/2 before a continuation lower within wave C/3. First resistance would be at the former wave »iv« swing high, while second one would be at the wave »i« swing low.
Bitcoin 4-hour Elliott Wave Trading Analysis
ETHUSD is acting quite strong, but we are still tracking an A-B-C correction within wave (B)/(2) that can retest 4500-4600 resistance area before we will see more weakness within wave (C)/(3).
Ethereum 4-hour Elliott Wave Trading Analysis
The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.