BTC and XRP - Breakout to be expected shortly, but from which side?

FXOpen

BTC/USD

From yesterday’s high at $7592 the price of Bitcoin has decreased by 3.55% as it came down to $7322 at its lowest point today. It’s currently being traded at $7377 which is slightly higher with the price being stuck in a resistance range.

BTC and XRP - Breakout to be expected shortly, but from which side?On the hourly chart, you can see that the price is inside the apex of the symmetrical triangle formed by the interrupted ascending trendline and the descending channels resistance level. The price is retesting both levels and is why it’s stuck in this range so a breakout would be expected shortly.

The interrupted ascending trendline dates back from February when the next wave to the upside started and served as the first baseline support from the move to the upside. The level has been pierced on the 25th of November when the price spiked to the 1.272 Fibonacci level but this resulted in a strong buying activity as the price came back to retest the descending channels resistance. The price increase was made in a five-wave manner which indicates impulsiveness which was expected to start as the previous downfall most likely ended on the Fib level interaction.

If this is true the currently seen structure could be a three-wave correction which is why another move to the downside could be expected from here to the $6914 horizontal support before further movement to the upside continues.

XRP/USD

The price of Ripple has decreased by 4.4% from yesterday’s open at $0.23235 as it came down to $0.22215 at its lowest point today. Last week on Thursday a minor recovery has started and pushed the price above the 1 Fib level but since then a minor retracement has been made below it. This could be an early indication that the price decrease would continue further as the level hasn’t served as support.

BTC and XRP - Breakout to be expected shortly, but from which side?

On the hourly chart, you can see that the price of Ripple moved sideways since the interaction with the 1.272 Fibonacci level and reached a prior high level without surprising it before another downturn started. As the price made an ascending triangle on the previous increase and then went on to decrease on a higher low this could be the start of the 3rd wave to the upside out of which we are seeing the 1st sub-wave.

But more likely, since the last increase looks choppy and corrective we have seen a three-wave sideways move which is another correction before further lower lows. If this is true then this could be the 4th structure out of the wxyxz correction of a higher degree which would mean that the price of Ripple is headed further to the downside as the Z wave should develop fully. This will be validated but the depth of the current retracement as well as the momentum of the next move to the upside.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — 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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

Shares

JPMorgan (JPM) Shares Rise Over 4% Following Earnings Report

On Friday, before the market opened, JPMorgan (JPM) released its Q3 earnings, which exceeded expectations:

→ Earnings per share: Expected = $3.99, Actual = $4.97
→ Revenue: Expected = $41.4 billion, Actual = $43.4 billion

CEO Jamie Dimon praised the strong results

Indices

S&P 500 Reaches Another Record High

As shown by the S&P 500 chart (US SPX 500 mini on FXOpen), the leading US stock index set its 45th record of the year, closing above 5800 on Friday. This marks the fifth consecutive week of growth,

An Ascending Channel Pattern: Unique Features and Trading Signals
Trader’s Tools

An Ascending Channel Pattern: Unique Features and Trading Signals

Trading in financial markets can be a challenging task, but with the right tools and techniques, it can also be an exciting experience. One of the indicators that can help a trader build a strategy is the ascending channel pattern.

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.