Home Markets Daily Technical Analysis August 24, 2022: Total Crypto Market Cap

Daily Technical Analysis August 24, 2022: Total Crypto Market Cap

Daily Technical Analysis August 24, 2022: Total Crypto Market Cap

In this episode of NewsBTC’s all-new daily technical analysis videos, we take a look at the total crypto market capitalization using Elliott wave theory.

Specifically, this episode examines where the current corrective phase is and where the cryptocurrency market is in its overall bull cycle. Watch the video below.

VIDEO: Total Crypto Market Cap Analysis (TOTAL): August 24, 2022


Looking at the cryptocurrency total weekly chart, we take a look at the different types of corrections the crypto market could find itself in according to common Elliott Wave corrective patterns. Elliott Wave Theory was developed in the 1930s by Ralph Nelson Elliott and is based on the idea that markets move in specific patterns called waves.

Prices rise in a five-wave pattern called a driving wave where every odd wave moves with the main trend. The pair waves are correcting from the main trend. These patterns appear over different time frames and are what fuel the primary, secondary, and minor trends.

Double-three complex zig-zag correction could be completed

We first look at the recent corrective phase, starting with the late 2021 high. Generally, a higher high suggests that an uptrend should continue. However, some Elliott Wave corrective patterns can be incredibly misleading.

The corrective phase may or may not be complete. There are two types of corrective Elliott Wave patterns possibly in play: a complex double-three correction with a wicked zigzag that hashed the crypto market –– or just a broad flat correction that hasn’t finished grinding crypto to dust.

The most bullish scenario would be the double-three, which could suggest that the correction is over. We also discuss why this could indicate that cryptocurrency as an asset class is earlier in its market cycle than most would expect. Interestingly, the pattern would have ended at two key levels: a former retest of historical high resistance turned support, and at the 0.764 Fibonacci retracement level.


Is the bottom in? | Source: CRYPTOCAP-TOTAL on TradingView.com

Simple extended flat correction has another wave to make

Fibonacci retracement and extension levels play a key role in projecting Elliott Wave Theory targets and can help identify the wave the market is in. The most bearish alternative count would be a widened dishas indicated.

The broadened flat has a corrective ABC number, with the C wave acting as a separate five-wave impulse correction to the main trend. Currently, the total crypto market has only completed waves 1, 2, 3, and may have completed the 4th wave and is about to start a 5th wave to the final bottom.

Both of these corrective patterns imply that the overall crypto bull cycle is not over and either wave five or wave three and five remain.


Or do we have a lot more to go? | Source: CRYPTOCAP-TOTAL on TradingView.com

Is another Crypto Bull Run about to begin?

After moving to the daily chart, we explain what could be the start of a bullish impulse. If the market can establish support at the current level and move back up, we could have a leading diagonal in play.

Like Elliott Wave corrective patterns, even bullish patterns can be misleading. Before ruling out what initially looks like a rising corner breaking down as a clear sign that there is more downside ahead, we compare the current price action to the last bullish impulse to see how it started.


Is a new bull phase beginning? | Source: CRYPTOCAP-TOTAL on TradingView.com

Teach yourself the technical analysis of crypto with the NewsBTC trading course. Click here to access the free educational program.

This whole week at Elliott Wave International is Trader Education Week. Here is free access five exclusive videos from one of the world’s top Elliott Wave analysts. You can also get the Elliott Wave book for free with free registration.

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Featured image from iStockPhoto, Charts from TradingView.com


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