The price of Bitcoin has been on the rise since the 26th of Jun and made it back to the $36,000 area on the 29th. From there we have seen a descending move with the price moving sideways after. Currently, it is being traded at $$33,893 and made a lower high today compared to yesterday’s one and is moving to the downside.
Looking at the hourly chart, you can see that a triangle is being formed which could be the 2nd sub-wave of the higher degree descending move. Considering that the prior move ended most likely as the ABC correction to the upside with the price falling back inside the territory of the lower range of the 1st wave from the 22nd. this is currently more likely. In this case, the price is to form the 3rd wave from the descending move that started on the 16th of Jun when another three-wave ABC to the upside completed.
If this is true, then we will see a breakout to the downside below the $31,000 mark, which served as a strong horizontal support level. However, this sideways movement that formed a triangle could be a consolidation range before another move to the upside that is set to break the $36,183 horizontal resistance. This is why the validation will come as a breakout direction from the mentioned triangle and will dictate the next dominant trend.
Ripple has been in recovery from the 22nd when it fell down to $0.513 at its lowest point. From there we have seen an increase to $0.731 on the 29th but then again another descending move. At the moment the price is being traded at $0.66236 and is testing the ascending support level from the channel in which it is from the 26th.
Like in the case of Bitcoin this range could be a consolidation one with the price going further upward but it could also be a corrective wave that is going to end with further downside movement. Unlike in the case of Bitcoin, we haven’t seen a triangle but an ascending channel which could be slightly more bullish. However, a validation is going to come in the same way as a breakout direction from this range.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice. Cryptocurrency CFDs are not available to trade in all jurisdictions.