BTC/USD
The price of Bitcoin has fallen by 18% from last Monday’s high at around $12074 measured to its lowest point made on Sunday at around $9860 which was retested again yesterday. From yesterday’s low, the price started increasing again and made a higher high but we currently seeing a minor retracement with the price looking for support around $10173 area.
On the hourly chart, you can see that the price is testing the 0.382 Fib level at the moment for support and is likely to find the support there if we have seen the completion of the descending move and the beginning of a recovery of a higher degree.
Potentially another retest of the Sunday’s low could be seen as the price has started forming a horizontal level whose validation is still awaited by the third interaction but is more likely forming an ascending range in which further highs could be expected.
If this was the completion of the 4th wave from the higher degree count made on Sunday, the increase after and the retest of its prior low could be the first two waves of a lower degree count. This makes the current one being the third one in development and with its first sub-wave showing a five-wave move, its is showing signs of impulsiveness already.
If the price finds support on the 0.382 Fibonacci level and continues increase past the ascending resistance it could be an early indication that it started developing its 5th wave from the higher degree count which is set to bring the price of Bitcoin into new higher highs.
But if the price doesn’t find support around the vicinity of the current level and continues decreasing from here it would mean that we have seen a three-wave correction to the upside with the increase made from yesterday’s retest the C wave.
XRP/USD
The price of Ripple has fallen in a similar manner like the price of Bitcoin as from the 1st of September we have seen a decrease of 24.17% coming from slightly above $0.3 to $0.23 at its lowest on Sunday. Since then recovery has been made with the price currently sitting at $0.23640.
As you can see by looking at the hourly chart, the price made a five-wave decrease to the downside in a descending triangle. This could either be a corrective ABCDE count or an impulsive move. Considering what’s been said for Bitcoin the same applies to Ripple. We could be seeing the start of the higher degree move to the upside out of which the current one is the first sub-wave of the 3rd wave, or we could have seen the completion of a corrective ABC to the upside.
In the first case, the price is to find support shorty and continue moving to the upside again but if it continues moving to the downside below the 0 Fib level the second scenario would look more likely at this stage.
Open a Crypto 10 account and trade with FXOpen!
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 making your money go further 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.
