From last Wednesday when the price of Bitcoin was $6484 at its lowest point we have seen an increase of 18.67% as the price came up to $7694 at its highest point yesterday. Since yesterday’s high the price started pulling back and is currently sitting at around $7360 level.
On the hourly chart, you can see that the price of Bitcoin fell below the significant horizontal level at $6914 on the way down and continued moving to the prior low vicinity around $6600. This is considered as a B wave from the ABC correction to the upside after which an impulsive C wave was expected. Indeed we have seen an impulsive move to the upside developing after a retest of the prior low but the price hasn’t come up to retest the descending channels resistance level as expected before starting another downturn.
This could have been the completion of the C wave the upside wave structure could be interpreted as a five-wave move, and especially considering that the B wave ended lower than expected so could have the C wave. As you can see the projection made has slightly higher targets with the C wave presumed to go above the ending point of the A wave. But as the B wave went below the starting point of the A wave this could have been the completion of the ABC to the upside.
We could see potentially another push to the upside but not far further as there are numerous resitance points above the current price levels. Some of them might get retested before another ABC to the upside starts but in either way, I would be expecting further sideways movement before another impulsive downfall from here.
The price of Ripple has been struggling to get above the $0.2 mark ever since it fell below it last week. It is currently being traded at around $0.19130 and is in a downward trajectory.
Looking at the hourly chart, you can see that the price retested the descending support level for resistance as it fell below it last week and has finally found resistance there which is starting to cause another downturn. From last week’s low, we have seen the formation of the ascending triangle in which a five-wave move was made and can be interpreted as a leading diagonal from the starting uptrend. In that case, the currently seen depreciation is only a minor retracement before the next impulsive move to the upside starts.
But this could also be another corrective ABCDE before further depreciation for the price of Ripple. If the price stops decreasing above the 1.618 Fib level and starts moving to the upside above the descending trendline it could indicate the start of a recovery. But more likely we are going to see the price of Ripple going below 1.618 Fib level in which case further lows could be expected, potentially down to $0.15186 as its the next significant horizontal level in line.
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.