No major changes in the crypto market since last week, as activity remains slow following some pressure on stocks toward the end of last week. The crypto market could still be approaching interesting support levels after last week’s decline, which was triggered by Binance disclosing a record hack, although most of the funds have already been recovered. Stocks, meanwhile, are seeing a sharp rebound at the start of the week after a report suggested that President Donald Trump wants to give diplomacy with Iran more time before considering a resumption of military strikes following Tuesday’s midterm elections. The prospect of a pause in escalation has helped support risk sentiment, which could also potentially support the crypto market soon. The crypto TOTAL market cap chart is still sitting at the previously mentioned and important 2.5T support area within wave (C) of an (A)(B)(C) correction or wave (Y) of a complex (W)(X)(Y) correction. However, bulls may be back in control only if we see a sharp rebound or an impulsive recovery back above the channel resistance line near the 2.7T area.
Bitcoin is slowing down after completing an extended wave (3), suggesting that a higher-degree wave (4) correction may now be underway. Following the recent leading diagonal formation into wave A and a subsequent pullback in wave B, it appears that wave C is now in progress and could be approaching completion near the important 38.2%–50% Fibonacci retracement area, which aligns with the $76K–$74K support zone.
Bulls looking for the next impulsive advance in wave (5) may regain control only after a break above the channel resistance line and the $84K area. Alternatively, if BTC breaks below the $74K support zone, it would suggest that wave (5) of the larger impulse may already be in place, opening the door for a deeper correction.
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