BTC and XRP - Breakout seen but first resistance encountered

BTC/USD

From Sunday’s low at around  $43,070, the price of Bitcoin came up $49,579 at its highest point today which was a recovery of 15%. Since today’s high, we have seen a minor pullback but the price is still in an upward trajectory overall.

This recovery of 15% was a breakout from the descending triangle that formed from the 25th of February and was the 3rd sub-wave from the correctional move that started on the 21st. The price found support on the 0.5 Fib level on Sunday which led to the price increase and ultimately to a breakout but now new resistance has been encountered above the prior local high at the significant horizontal level.

We could have seen the completion of the 4th corrective wave from the higher degree count with the wave structure implying that the descending triangle from which it broke was the C wave from the lower degree count. If this is true, then the current rise is the next starting impulse that is going to push the price of Bitcoin above its prior all-time high onto the next one.  But first, there must be a validation which would come in a form of a breakout from the currently interacted horizontal resitance level. This is why now the pullback might continue to the 0.382 Fib level where if the price finds support, further uptrend continuation would be expected.

XRP/USD

The price of Ripple has also been increasing from Sunday and came up from $0.396 to $0.45325 at its highest point today, which was an increase of 14.44%. Currently, it is being traded at $0.44327 and is moving sideways.

Looking at the hourly chart, you can see that the price of Ripple made a breakout from its descendent triangle as well but unlike in the case of Bitcoin hasn’t exceeded its prior local high, but instead found resistance at its levels. This is why now a cluster is being formed at the horizontal level as the price is retesting it for resistance. If the bullish momentum is still present another breakout is likely to occur which would lead the price of Ripple for interaction with the more significant zone between $0.48 and $0.5

Since the previous descending move appears to have ended, the continuation of the upward trajectory looks highly likely but from the interaction with the now found resistance, we are going to see if the bulls manage to maintain control which is going to dictate the next trend direction.

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.

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