Crypto Market Holds Near Key Support As Traders Await NFP Report

The crypto market is showing relative resilience despite continued weakness across global equity markets, where a massive selloff in technology stocks has raised concerns about tighter AI industry regulations following the Democrats’ decisive victory in the US midterm elections. With Bitcoin and the broader crypto market still holding near previously highlighted support levels, a short-term stabilization and corrective recovery remain possible, particularly ahead of today's important US NFP report and the weekend.

From an Elliott Wave perspective, the TOTAL crypto market cap is still trading near the important $2.5T support area. Despite printing a new lower low, the price structure remains slow, choppy, and overlapping, suggesting a complex (W)(X)(Y) correction that may be approaching its final stages, with subwave C of (Y) potentially nearing completion. This leaves room for a relief rally, although bulls still need to reclaim the channel resistance line near $2.7T to provide stronger evidence that a more meaningful recovery is underway.

Altcoins continue to show mixed technical conditions, with some approaching important support levels while others may still need more time and downside before buyers step back in. We can now identify some short-term intraday wedge patterns, which could trigger at least a temporary recovery. Looking at OTHERS, which tracks the crypto market excluding the top 10 cryptocurrencies, the current structure suggests that it may be nearing the end of a complex (W)-(X)-(Y) correction, with subwave C of (Y) potentially forming a wedge pattern. Alternatively, the decline could represent only the first leg (A) of a larger (A)-(B)-(C) correction, which would still allow for a temporary wave (B) recovery soon, ideally from the current $200B area.

Meanwhile, TOTAL2, which excludes Bitcoin, appears to be completing a leading diagonal in wave (A), increasing the potential for a three-wave recovery within wave (B). Overall, both market-cap structures leave room for a relief rally over the coming days, although we should remain aware that the broader corrective phase may not yet be complete.