BTC and XRP - Are we seeing the start of the recovery?

FXOpen

BTC/USD

From last Monday when the price of Bitcoin was sitting at $7805 at its lowest point we have seen an increase of 12.73% measured to the highest point made on Friday which was at $8805. Since then the price started decreasing again and is currently sitting at $8333 and is now moving sideways.

BTC and XRP - Are we seeing the start of the recovery?Looking at the hourly chart, you can see that the price attempted to move above the significant horizontal resistance level at $8500 but the attempt ended as a fakeout at least for now as the price quickly came back and in a matter of hours decreased by 5.57%. This decrease could be interpreted as a sign of the resistance found but we could see another attempt playing out as the price hasn’t gone below the prior low and is instead retesting the vicinity of the prior high’s ending point which is serving as support for now.

Considering that we are seeing the 3rd wave from the WXY correction to the downside we could be seeing the start of the expected recovery but if the price action is to complete its ending wave in a five-wave manner another lower low could be expected to around $7000 which is a significant support point.

If the price starts moving below the $8500 resistance with strong momentum it would serve as an early indication that the recovery has started, but if the price continues moving to the downside from here and goes below the prior low at around $7800 it would most likely mean that we are to see another lower low before the recovery.

XRP/USD

The price of Ripple has reached its significant horizontal resistance at $0.29405 today but is currently being traded below it as interaction ended as a rejection. From last Friday when the price was trading at $0.2659 we have seen an increase of 12.48% as the price has been developing its 5th wave to the upside.

BTC and XRP - Are we seeing the start of the recovery?As you can see from the hourly chart the price has also reached the resistance intersection with the ascending channel which was formed from the 25th of September which is why now I would be expecting a retracement from which we are to see if the uptrend continuation would occurre or was this increase corrective in nature. This pattern shows a steep bullish trajectory but could also be corrective as prior to the decrease we have seen oversold conditions with the price dipping below the lower support level at $0.24744. Since the interaction with the most significant horizontal level has been made it is serving as pivot point above which the uptrend continuation looks likely, but below which downtrend continuation is probable.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

BTC/USD Analysis: Bulls Lose Progress Amid SEC Defeat Bitcoin Trading Volumes Fell to a Minimum of 4 Years BTC/USD Price Analysis: RSI Drops to Lowest Since March 2020 BTC/USD price analysis: The Price of Bitcoin Collapses by about 8% in One Day Market Analysis: XRP/USD Price Rolls Back to Important Support

Latest articles

Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting

As expected, the decision on the interest rate had a powerful impact on the markets. Thus, the euro/US dollar pair lost more than 100 pp in just a couple of hours and updated its recent low at 1.0630,

Commodities

Oil Analysis: Finally, A Bearish Reversal?

The policy of OPEC+ countries to voluntarily reduce oil production was one of the drivers thanks to which the price of WTI oil increased by approximately 40% from its low in June. In such cases, it is appropriate to use

Commodities

Central Bank Week Shakes Up Gold Market

Yesterday, the main event of the week took place — the Federal Reserve meeting, which had a noticeable impact on the market of assets denominated in US dollars. But besides the Fed meeting, there are a number of other events this

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.