BTC and XRP - Impulsive increase likely ended

FXOpen

BTC/USD

From last week when the price of Bitcoin was sitting at $9145 at its lowest point on Monday, we have seen an increase of 24.31% measured to the highest point the price has been today which is the spike made at $11368. Since then we have seen a 4.58% retracement with the price currently sitting around $10953 and is in a downward trajectory.

BTC and XRP - Impulsive increase likely ended

Looking at the hourly chart, you can see that a strong parabolic move was made to the upside breaking out from every significant resistance point along the way out of which the most significant one is the further at around $10500 level where the last ascending trendline is. As these breakouts occurred without proper retracements that had to serve as a retest of the broken resistance for support and we have seen only local pullback the move to the upside is considered an unsustainable one and is likely going to be equally impulsive on the downturn going back below some of the presumed support levels.

The wave structure implies that we have seen the completion of the five-wave impulse of a higher degree count in which case we are now seeing the development of the first significant correction. If this was the 1st sub-wave of the next higher degree five-wave impulse to the upside then the correction could lead the price all the way back below $9800 mark but considering the bullish bias, it is more likely going to end around the $10500 area before another upturn starts.

XRP/USD

The price of Ripple has increased by 18% coming from last Monday’s low at $0.19455 to $0.22973 made today at its highest point. At the moment the price is being traded at around $0.22279 as from today’s spike we have seen a pullback of 3.85%.

BTC and XRP - Impulsive increase likely ended

On the hourly chart, we can see that the price found support last Monday on the 0.382 Fibonacci level from which after a breakout from the local descending triangle an impulsive move to the upside was made. This was expected but the price hasn’t stopped out around $0.214 like previously projected and was considered as the zone of interest of a correction but instead continued increasing further above and came back to retest it from the upper side after a breakout.

As we are now seeing the price in a starting sideways movement further corrective structure is expected to develop but as the first significant correction of the same degree as the five-wave impulse that developed from the 16th of July.

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