From yesterday’s open when the price of Bitcoin was $6618, we have seen a recovery of 11.8% today as the price came up to $7405 at its highest point today. Last week we have seen interaction with the 0.786 Fib level and the descending triangle’s support level which was the significant support point but the price broke out to the downside with strong momentum.
Looking at the hourly chart, you can see that the price came down below the previous low at around $7400 which was been retested today and proven to serve as resistance which is why another minor retracement has occurred. As the price came down below the prior low it invalidated the count in which we are seeing the start of the five-wave impulse to the upside with the decrease from the 26th of October being viewed as the 2nd wave.
We are more likely seeing the descending channel correction continuation with another move to the upside now likely to end below the previous high at $10280 made on the 26th which would be the completion of another three-wave correction. This means that we could be seeing the second wave X out of the higher degree WXYXZ correction out of which the $7400 low was the ending point of the Y wave.
If this is true, then after another upside move the price of Bitcoin is to continue moving further to the downside but first we are to see where the corrective increase would end.
The price of Ripple has continued decreasing from the last week’s interaction with the support level at $0.244 and came down to $0.20865 at its lowest point yesterday. From there we have seen an increase of 9.05% as the price came up to $0.22591 at its highest point today.
On the hourly chart, we can see a similar picture like in the case of Bitcoin especially the interactions with the Fib level as the price found support on the 1.272. The price fell below the previous low at $0.2276 with strong bearish momentum indicating that we are still in a corrective stage of a higher degree and invalidating the possibility of the developing impulse wave.
But now I would be expecting the start of the recovery and an impulsive move to the upside but most likely in the form of the C wave as the current structure is to end on the third wave as a corrective three-wave move to the upside. This means that after it’s completion the price of Ripple is to continue moving to the downside, establishing further lows.
Depending on the hight of the now expected move to the upside we are going to evaluate the next low potential but as the price moved below the previous one I would be expecting a lower high below the significant horizontal support level at $0.29405 whose retest we might see.
Expertise: Cryptocurrencies, Technical analysis, Elliot waves, Fibonacci
Nikola has a bachelor degree in Sociology, which gives him the edge in the financial market, knowing a lot about herd mentality. That is why he uses Elliot wave principles mostly, in combination with Fibonacci levels. He started learning more about financial markets back in 2015 and is now a full-time trader.
As an anarcho-capitalist, he fully supports the vision of decentralized future offered by cryptocurrencies, that’s why his attention and interest are mostly focused on them. His analysis has been praised by some of the most influential people from the cryptocurrency scene, like Jeff Berwick, the founder of The Dollar Vigilante Newsletter, Vit Jedlicka, the president of Liberland, and other trader colleagues.