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 .
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 , 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 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 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 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.
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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.
Published at Fri, 22 Nov 2019 13:21:36 +0000