BTC and XRP - Establishing Support

FXOpen

BTC/USD

The price of Bitcoin has been increasing since last Thursday when it was sitting at $10539.2 and from there reached $11742 at its highest yesterday which was an increase of 11.42%. From yesterday’s high the price pulled back by 2.6% and is currently being traded at around $11500 level.

BTC and XRP

On the hourly chart, we can see that last Thursday a breakout was made from the symmetrical triangle in which it was since the yearly high was made and the bullish momentum pushed the price above two significant horizontal levels at $11138.5 and the next one at $11428.3. The upper significant horizontal level correlates with the 0.618 Fibonacci one that is currently being tested for support.

As the price broke out into the upper range and is establishing support on its horizontal level further upside would be expected. First, a validation of the support level is needed and is likely going to occur in the current test. If not the price could go back down to the interrupted ascending trendline for another restest after it found support there on yesterday’s pullback.

The breakout that occurred from Thursday is most likely the continuation of the upward movement that is to propel the price of Bitcoin above $12000 area but first a revisit at those levels will tell us how much more room the price has to the upside.

XRP/USD

The price of Ripple has been following a similar pattern as from last Thursday when it was sitting at $0.2427 made an increase of 7.34% coming to $0.26 at its highest point. Now the price is being traded at around $0.2569 level and has started moving sideways after a third revisit to the $0.26 resistance zone.

BTC and XRP

On the hourly chart, we can see that unlike in the case of Bitcoin the price of Ripple made a higher low on the 2nd of October after it came down to $0.22 on the 24th of September. This is when the upward movement started unlike in the case of Bitcoin whose price started showing bullish signs after the 7th of September. The price continued its increase above $0.2473 which was a significant horizontal resistance after the September 24th low.

As we have seen the increase continuing it reached another significant horizontal resistance at the prior higher high made on the 17th of September after which a correctional structure has started developing. Now we are most likely seeing a consolidative correctional move inside a triangle which is set to bring the price of Ripple for another retest of its ascending trendline before a breakout to the upside would be made above the $0.26 resistance zone.

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