From yesterday’s high at $7193 the price of Bitcoin decreased by 4.07% today as it came down to $6905 at its lowest point. The price is currently still being traded around those levels with the price resting at the horizontal level in proximity.
On the hourly chart, you can see that the price fell back to the projected level at around $6914 which is presumed to be the C wave out of the lower degree ABC correction and projected with the A wave’s length. This is the B wave of a higher degree as the second corrective wave after the leading diagonal retested the 1.272 Fibonacci level. In theory, it could go below the previous low but considering the significance of the horizontal support level which is currently being retested, I don’t believe that it will go much further.
We are yet to see if the support level holds but if it does I would be expecting the start of the C wave to the upside which is to lead the price of Bitcoin retesting some of the significant resistance levels. The furthers one would be the descending channel’s resistance which would bring the price above $8000. But is this is considered as a corrective three-wave move to the upside this recovery would be short-lived as another three-wave move to the downside would be expected.
The price of Ripple has fallen below $0.2 mark for the first time after in two years. The downfall was made from $0.21881 on yesterday’s open to $0.19031 at its lowest spike today. Currently, the price is being traded at $0.19865 and is showing minor bullish signs.
Looking at the hourly chart, you can see that this downfall is like in the case of Bitcoin expected to end shortly as we have seen interaction with the descending support level with a large wick from the buyer’s side. The price would be expected to start moving to the upside now but potentially maintaining in a downtrend as it can be corrective in nature.
Another possibility can be that we have seen the end of the Y wave in which case today’s low is the last wave from the decline which started on the 7th of November. But my primary count is that we are seeing another ABC correction to the upside after which further depreciation could occur. In either way, from here I would be expecting an increase from which we are to evaluate the possibility.
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.