In our previous article about Bitcoin setting up for its next big move, we discussed the recent price action for Bitcoin using the Elliott Wave Theory. As of press time, BTC price seems to have finished the 1st wave hitting the $11,800 resistance level, and is currently finishing the 2nd wave dropping back to the $9,500 levels. A bit of consolidation is happening at the $9,400 – $9,600 levels.
The Relative Strength Index (RSI) indicates that at the $11,800 level, Bitcoin is being overbought, which resulted to the expected 2nd Elliott Wave pull back to the 21-day Exponential Moving Average (EMA) and 100-day EMA. As of the time of writing, RSI is at a neutral level, which further provides evidence that Bitcoin is currently consolidating.
Looking at the price action on a different perspective, we can see that Bitcoin is currently sitting on a kill zone. It is hovering inside a rectangle with critical top and bottom boundaries. A kill zone happens when price is stuck between strong resistance and strong support. If the Wave 2 is in fact coming to an end, we can see a Wave 3 price action, breaching the $11,800 resistance level and heading towards higher highs, even up to the $13,000 levels. If, however, the Wave 2 is not yet done, then we may see further declines in the coming days.
While Bitcoin is at critical levels deciding whether to continue Wave 2 correction or start the upward Wave 3 rally, most cryptocurrencies in the market are currently in the red. According to CoinMarketCap, only 2 out of Top 20 cryptocurrencies, Litecoin and VeChain, have recorded gains in the last 24 hours. 79 out of the Top 100 coins and tokens have declined in the past day. Some notable gainers amidst the sea of red in the cryptomarket are Litecoin, NEO, Golem, Icon, and Electroneum.
In terms of Global Market Capitalization, after reaching the $500 billion mark again last February 17, it has since dropped to the $420 billion level as of press time. Bitcoin market dominance is now steadily approaching the 38% mark.