Cryptocurrencies making deeper pullback
|Today is Labor Day in most European countries, but we are still here updating some charts due to the interesting and volatile price actions we’re seeing today. Currently, the US dollar is advancing, with the Dollar Index breaking above 106 during yesterday’s US session ahead of key economic data from the US. As you know, the Fed will release its latest decision on interest rate policy today, and there is increasing speculation that they will maintain their current stance for a longer period. This anticipation is driving the US dollar higher while stocks are declining, and cryptocurrencies are also turning to the downside.
Looking at the total market cap for cryptocurrencies, we are observing a potential breakout from the wave B triangle that we highlighted earlier. This is significant because there was only a three-wave rise from the April 13th lows, indicating a correction, ideally a wave C within a triangle. If our analysis is correct, the current thrust out of the triangle could still be representing the final leg of this correction. However, there is still room to drop even to 1.9 trillion before potential support is found. A reversal and a significant bounce back to 1.23 trillion would be necessary for a true reversal, which is crucial if you are a short-term trader.
Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.