TOTAL CRYPTO-CAP, Complete H-S-Formation, Precarious Now!Hello,
Welcome to this analysis about the total cryptocurrency market cap and the daily timeframe perspectives. The whole market recently heavily dumped to the downside which happened simultaneously with the stock market also dumping and after the news came around that the European Union Financial Regulatory Arm wants to completely ban Proof-of-Work mining, this had immediate dramatic effects on the market with nearly all coins heavily declining to the south. Now in this development the whole market as I detected completed the main formation with this mega dump and now there are further determinations that should be considered when looking forward. In any case, we currently should not underestimate the possibility of a bearish continuation and be prepared for it. In this manner, I detected all the important levels and upcoming developments we need to consider here.
Structural Developments:
As when looking at my chart we can watch there how the total cryptocurrency market cap has formed this massive decisive head shoulder formation with all elements of the formation already completed and recently the breakdown happened below the neckline which technically completed the whole formation. In a YouTube video, I explicated this formation, you can still watch it as it is still active. Now as the total cryptocurrency market cap dumped into the 640 Billion US-Dollar support marked in my chart in grey this is a crucial level because it will decide upon the upcoming outcomes of either a possible reversal or not. For now, the total cryptocurrency market cap has a major resistance cluster marked in my chart in red where several resistances coming together and with that being said when the total cryptocurrency market cap moves into this zone a heavy pullback will be highly likely.
Upcoming Determinations:
Taking all these factors into the consideration it will be highly conclusive on how the total cryptocurrency market cap moves after pulling back off the resistance cluster, if the market then breaks down below the 640 Billion US-Dollar support then a wave C extension will be indicated as it is seen in my chart. Otherwise when this does not happen, which is the less possible scenario is when the market stays above this main support and initially manages to stabilize within to form a reversal in this area however according to the strength of the breakdown and the high intensity with which bearishness showed up in the market the initial bearish continuation scenario has a higher possibility as the final head shoulder target zone still has not been reached yet this will happen with the wave C extension. For now, we need to be prepared for such bearish volatility continuations.
In this manner, thank you for watching the analysis, all the best!
"The high destiny of the market is to explicate, rather than to speculate."
Information provided is only educational and should not be used to take action in the markets.
