Based on the Elliott wave counts of most cryptos, I think we are in a pullback mode which might continue for few weeks before we see a fresh impulse that could drive the cryptos to new all time highs. Meanwhile, MATIC caught my eye as it looks relatively more bullish as it seem to have been holding better during the pullback cycle.
From June 2022 lows, we can count a clear 5 wave impulse followed by multiple ABC corrections which overall looks like WXY complex correction. WXY seem to have completed around start of 2023 (marked as 2). After that we saw a impulse move which took out the highs of both wave 1 and the 2 (WXY). However, since we fell again and the price overlapped with wave 1, I would like to think that we are doing extension here (1-2-1-2). If true, this would mean we would likely see further corrections with at least 2 wave 3s, i.e. 1-2-1-2-3-4-3-4-5. As of now, we seem to be in second wave 2 pullback after which we might see first wave 3.
Now, if we put the Elliott Waves aside, we see a rising wedge formation which has bearish implications. It’s too early to say since it might change into a parallel channel (w.r.t. the lower line drawn joining 2s) once wave 3 starts forming. I would give preference to Elliott Wave view here unless proven wrong.
