BTC and XRP - Corrective recovery expected



From yesterday’s low at $4472 the price of Bitcoin has increased by 21.5% as it came up to $5435 at it’s highest point today. The price is currently being traded slightly below those levels as it encountered horizontal resistance but is still in an upward trajectory overall.
BTC and XRP - Corrective recovery expected
On the hourly chart, you can see that the price of Bitcoin has been looking for support at the descending trendline (bold black line) which is the support baseline from the first corrective decrease in June last year. As this level got retested and the price didn’t go below it on an impulsive decrease and again attempted a breakout but failed we can say that the price found support there.

However, it hasn’t made any higher highs since then as it was stopped out by the $5377 level which is currently rejecting the price. This might not continue for much longer as the recovery is likely to continue above the level as indicated by the bullish momentum which is catching on but the expected recovery would be a corrective one.

The decrease in price which Bitcoin experienced pushed the price below the most significant horizontal level at $6266 which is considered a Pivot point above which we could be seeing a bull market and below which we are seeing the bear one. As this level hasn’t been properly tested after a move below it in the upcoming period I would be expecting it retested.


The price of Ripple has increased by 18.2% from yesterday’s low at $0.1289 to $0.15224 at it’s highest today. Like in the case of Bitcoin the increase has been stopped out at the first horizontal resistance in line to the upside but the bullish momentum is likely to continue. BTC and XRP - Corrective recovery expectedLooking at the hourly chart we can see that the decrease made below the $0.15186 level was, after all, a five-wave impulse and not an ABC correction which means that it now most likely ended on yesterday’s low. This is why now I would be expecting a recovery but only a corrective one as this five-wave impulse to the downside could be the A wave of a higher degree.

If the price continues moving above the currently found resistance which I believe that it will we are likely to see an interaction with the 1.272 Fib level at around $0.2 as this was the most significant horizontal level to the downside and its retest for resistance is to occur before further downside movement.

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

Cryptocurrency Prices Rise on SEC Rumours Market Analysis: Bitcoin Sets September High 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

Latest articles

Forex Analysis

Market Analysis: US Dollar On the Rise Despite Weak PMI Data

EUR/USDThe euro fell against the US dollar on Friday as economic data showed a contraction in economic activity, which could prompt European Central Bank hawks to soften their policy stance. Preliminary data indicates a contraction in economic activity in

Financial Market News

Economic calendar: NASDAQ 100 May Keep Falling, High Volatility in Oil Markets, Potential Appreciation of the US Dollar

The US, Japan and the UK may have kept interest rates on hold last week, but with the Federal Reserve indicating that rates will stay higher for longer, there is turmoil in the equity markets. The NASDAQ 100 fell 500

Financial Market News

Financial Markets Waking Up after a Turbulent Week: Important News

The main event of last week was information from the Fed. Jerome Powell once again demonstrated his determination to maintain a tough political stance, which caused: → increase in bond yields. Yields on 10-year securities reached their highest since 2009; → the

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.