BTC and XRP - Downside expected as significant support has been breached
BTC/USD
From yesterday’s open when the price of Bitcoin was sitting at $9988.8 which was it’s highest point, we have seen a decrease of 4.71% as the price came down to $9518 at it’s lowest point today. Currently, the price is hovering around those levels and is sitting slightly higher at around $9564.
As we are now seeing a breakout to the downside from this ascending range it could indicate that the price increase has ended and that we are seeing the development of the descending wave. The fact that the price retested the ascending support for resistance after a breakout has been made and got rejected there makes this possibility more probable. It is worth noting that the price made a higher low compared to the prior one which had a large wick but a series of lower highs with spikey price action is confirming a downtrend.
This is why a lower low would be immediately expected, most likely to the 1 Fib level or somewhere around its vicinity, but if the correction of the same degree as the ascending channel wave, the price is set to go significantly lower then $9127.7.
XRP/USD
On yesterday’s open the price of Ripple was $0.2839 and from there to it’s lowest point today so far which is at $0.2626 made a decrease of 7.51%. Like in the case of Bitcoin, Ripple’s price is also still hovering around those levels. but unlike Bitcoin, Ripple’s price chart made a lower low compared to the previous one at around $0.267.
If the price, however, spikes to the upside in the following day it could mean that this breach below the $0.266 level was a dip that retested the vicinity of the prior low’s spike looking to activate another round of buying that is needed for the price to catch up some upward momentum.