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What our traders have to say about the cryptocurrencies' market.
Current situation
The Crypto market is led by bitcoin and for us to appreciate this market as a whole, we will consider bitcoin as the reference for the general analysis to understand where this market is heading from a technical perspective.
Since inception, bitcoin reached 17,798.68 high on 17/12/2017 in a five waves structure that was calling for a continuation higher after correction. This correction from the 17/12/2017 high took one year to complete down to 3,156.26 low to start a new cycle higher. The first leg of this cycle brought bitcoin to 13,970.00 high on 26/06/2019 in a three waves pattern that bulls could not convert into a bullish structure and from there we saw a deep correction to 3,782.13 low on 09/03/2020 (that we consider as an aberration event following covid-19 breakout as we initially called for the end of the correction on 18/12/2019 low at 6,435.00. By that time, we were waiting for signals to resume swing trades that did not come until early April in our system).
With the continuation of the fall in market last week, we have reassessed the structure and we now propose a major cycle has ended, truncated, at 64,854.00 all-time high dated 14/04/2021 from March 2020 low at 3,782.13. From the top, we now see a sharp corrective in a three waves pattern and while the correction was fast, the direct drop into the expected 41,731.58-30,808.15 is enough to end the correction.
Bitcoin is still looking good from 08/06/2021 low and this pivot is still intact. Worries are on the Eth side whereby the pivot from 17/05/2021 low is very much threatened and if it were to fail, we could see the signal of the next leg lower in the weekly view. Until then, we like to maintain our view higher.
What to expect this week
While we saw a regain in the momentum in mid-term time frames in bitcoin, we could not confirm in the daily view and bitcoin is now correcting the entire cycle from 08/06/2021 low at 31,000. Short-term, the fall on Sunday saw a bounce that ended the cycle from 41,330.00 high and we now have to see the recovery.
This week, we are still waiting for signs from the market and while we are still in long position, 30,000 pivot is pretty much where all eyes are at now. Only above 41,330.00 would give relieve and until then, all options are possible.
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