Bitcoin and Ripple - Next move will dictate longer trend development

FXOpen

BTC/USD

Last week on Monday the price of Bitcoin was sitting at $9723.8 at the open from where we’ve seen an increase of 12.11% until Friday’s high when the price reached $10901 at its highest point. From Friday’s high the price has depreciated by 6.71% to Monday’s low at $10172 and but has recovered since and is currently sitting slightly above at around $10271.

Bitcoin and Ripple - Next move will dictate longer trend developmentLooking at the hourly chart, you can see that the price is still above the upper descending trendline which serves as support but has fallen below the 0.236 Fibonacci level and is forming a cluster. As the interaction with the 0 Fib line ended as a retest of the support level with the price finding support an increase of over 15% occurred but this increase mighty still be corrective before we see a strong downward move, especially considering that the price came up above the symmetrical triangle's resistance level and attempted to break out to the upside but found strong resistance there and pulled back inside the triangles territory.

Since the yearly high was made we’ve seen a correction taking place inside the triangle structure and it consisted of two WXY three-wave corrections which is why after the second Y wave ended around the 0.618 Fib level the third structure is likely developing. As the third structure is likely to push the price for a lower low a breakout to the downside looks more likely but we could see the current recovery continuing for another attempt for a breakout to the upside.

XRP/USD

The price of Ripple has been stuck in a horizontal range from $0.24730 with its median line being the Monday’s low at $0.25393 and its resistance level being at $0.26617. From last Monday’s low which was an interaction with the median level we’ve seen an increase to its resistance level but another minor retracement after the interaction ended as rejection with the price currently sitting at around $0.26.

Bitcoin and Ripple - Next move will dictate longer trend developmentOn the hourly chart, we can see that from the yearly high at around $0.5 the price of Ripple has been nothing but decreasing and has depreciated in value by slightly over 50% coming below the most significant horizontal support level at $0.29405 when it was also stuck in a horizontal range and continued to breakout to the downside. Will the same pattern develop and we are to see further downtrend continuation it is still unclear but the current horizontal range could be interpreted as a consolidative one from which recovery is to take place. A breakout from either side is going to dictate the longer-term trend development which is why the horizontal range outline levels are serving as pivot points.

 

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