BTC/USD
From yesterday’s low at $12771 the price of Bitcoin has increased by around 5% as it reached slightly below $13400 where it’s currently being traded. The price is in an upward trajectory after some days of consolidating but as it was doing so in an ascending range this could be the continuation of that ascending structure.
Looking at the hourly chart, you can see that the price of Bitcoin made a rise above the prior attempt for a breakout when the price came above the 1.272 Fibonacci level. As now we are seeing an impulsive move above the Fib level again it could be an early indication that a breakout to the upside is being made. On the other hand, there is still a possibility that the price is continuing to form its ascending channel as this move could end as a third interaction with its resistance level.
If we are seeing a breakout that would indicate that the 4th wave from the Minute count ended on yesterday’s low in which case the current move is impulsive and is going to push the price of Bitcoin higher above the 1.272 Fibonacci level. But if this is another corrective wave the price is going to get rejected at the current levels and continue moving to the downside to at least another interaction with the ascending channel’s support level.
XRP/USD
The price of Ripple has increased by 3.48% from yesterday’s low at $0.2443 and is currently being traded at $0.25193. This rise has pushed to price up to its minor resistance level which was the previous horizontal support and is now testing. The price found support on the ascending channels support level but dipped slightly below it at the intersection with the $0.24730 which could be interpreted as a bullish sign.
On the hourly chart, we can see that this was been accounted as the developing 5th wave from most likely the starting impulse wave of the higher degree which will be its leading diagonal. Another possibility could be that this is another corrective channel but since the price has continuously been forming higher lows and higher high since the 24th of September another higher high could be anticipated in the upcoming period.
The price target for this higher high would mark the completion of this 5th wave after which a corrective decrease would be expected. This is why the current rise could be that corrective decrease, namely its second wave if the 5th wave ended last Friday when the price came up to the $0.264 level. Like in the case of Bitcoin we are shortly going to see validation as if the price gets rejected it would indicate correctness, but if it continues increasing past the current levels it would indicate impulsiveness.
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.
