BTC and XRP - Major price decreases, but recovery on the horizon

FXOpen

BTC/USD

From last week on Friday when the price of Bitcoin was sitting slightly above $10000 we have seen a decrease of 18.16% measured to the lowest price has been which is at $8195 made yesterday. Since then we have seen another attempt of a recovery as the price has started to increase again but is struggling to get past the $8732 level.

BTC and XRP - Major price decreases, but recovery on the horizonLooking at the hourly chart, you can see that this decrease from last week’s high was made in a five-wave manner with yesterday’s low presumed to be its ending point. This is why the current upside move is considered the be the A wave from the now developing ABC to the upside which is corrective in nature and could bring the price back to the $9000 area where it will retest the broken support levels, both horizontal and ascending one.

If we see the price hold above the $8500 level and continues increasing beyond the $8732 one it will likely continue as outlined, but if the price continues moving to the downside and breaks the $8500 again it could indicate that the 5th wave out of the previous wave to the downside hasn’t ended in which case we are to see it’s development. In either way, since this recovery appears to be corrective I would be expecting to see a descending move after it retests and gets rejected at the mentioned support point.

XRP/USD

The price of Ripple has decreased by 16.8% from last week when it was sitting slightly above $0.22 and fell from there sharply to $0.187 level at first and continued moving even lower to $0.184 after some sideways movement. Now the price is back above the level of the previous lower high but is struggling to move above the $0.2 mark.

BTC and XRP - Major price decreases, but recovery on the horizonOn the hourly chart, you can see that it’s started to increase again after an interaction with the $0.18939 horizontal level which was retested and provided support of the falling price. Since we have seen a bounce on the lower low we could be seeing the start of another corrective stage which is the 4th wave of the higher degree five-wave impulse to the downside or like in the case of Bitcoin, the start of the news ABC as the impulse wave ended.

The price reached its first resistance point and now from the interaction, we are to see the further directional likelihood. If the price continues moving past the $0.2 mark an interaction with the $0.204 and the 1.272 Fib level could occur, but if it starts decreasing from here it could very well be further lows straight away for the price of Ripple.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading 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.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

ADA Drops to Last Place in the Top 10 Cryptocurrencies BTC/USD Analysis: Bitcoin Price Rises Ahead of Halving BTC/USD Analysis: Bearish Arguments Become More Convincing DOGE Price Increases by 170% in Less Than 2 Months Bitcoin Price Recovered over the Weekend, But Market Anxiety Remains

Latest articles

Weekly Market Wrap With Gary Thomson: UK100, USD, GOLD, OIL
Financial Market News

Weekly Market Wrap With Gary Thomson: UK100, USD, GOLD, OIL

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • UK100 Share Index Rises
Trader’s Tools

What Is a Darvas Box Theory and How Does It Work in Trading?

The Darvas Box Theory, pioneered by Nicolas Darvas in the 1950s, has transcended its stock market origins to become a valuable tool for forex traders. This method leverages specific price movements and patterns, known as the Darvas Box, to track

Shares

NFLX Stock Price Falls Despite Subscriber Growth

Yesterday, after the close of the main trading session on the stock market, Netflix reported to investors for the 1st quarter of 2024.

The report turned out better than expected:
→ earnings per share: actual = USD 5.28, forecast = USD 4.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.