The cryptocurrency market remains bearish and I see a strong potential of increased selling and further price declines.
This means that crypto bears are gaining strength and that we should be ready for further weakness in the weeks ahead.
As per coinmarketcap, the total crypto market cap has fallen below 2.0 T.
Looking at the USDT.Dominance chart, we can see a nice negative correlation compared to Bitcoin (BTCUSD). So, if we consider that USDT.D chart is on the way back to highs for wave 5, then BTC could easily take out 2021 lows before a bullish reversal.
As per Elliott Wave analysis, Bitcoin (BTCUSD) is coming even lower in the 4-hour chart after a retest of December 2021 lows, ideally within wave (C) or (3) and there can be room for more weakness, at least towards 33k-31k area for wave (C) if not even lower for wave (3) down below 30k. So, downside pressure toward this area or a little lower should not be surprising (especially while the price is below its strong trendline connected from the highs).
Bitcoin 4-hour Elliott Wave analysis
Ethereum, ETHUSD is coming lower in the 4-hour chart. We are still tracking wave C with room down to 2200 – 2000 area which should be completed by a five-wave cycle. Just have in mind that we will need to see a strong follow-on bounce and recovery back above 3400 level to confirm a completed wave C of an A-B-C correction, otherwise we could still see an impulsive bearish continuation.
Ethereum 4-hour Elliott Wave analysis
Twitter: @GregaHorvatFX
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.
