No big changes in Crypto from yesterday and intraday corrective recovery still in progress, so be aware of limited rise and watch out for more weakness.
The main reason for more downside pressure is that we can see risk-off sentiment in full swing, as stock markets are massively down, which can easily take the Crypto market lower, especially Crypto related stocks like Galaxy Digital Holdings. We have already shared it back in October and as you can see, it’s now turning sharply down after we noticed a corrective rally in wave B. If we see decisively broken 28 level and channel support line, then BTC could be easily headed much lower, maybe even back to June lows.
With current sharp rebound from the intraday lows, BTCUSD looks to have a completed wave »v« of A/1. So, we can now expect a three-wave a-b-c pullback in wave B/2 before a continuation lower within wave C/3. First resistance would be at the former wave »iv« swing high, while second one would be at the wave »i« swing low.
ETHUSD is acting quite strong, but we are still tracking an A-B-C correction within wave (B)/(2) that can retest 4500-4600 resistance area before we will see more weakness within wave (C)/(3).
Gregor is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that, he was working for Capital Forex Group and TheLFB.com.