The price of Bitcoin has recovered significantly from Sunday’s low of around $32,000 as it made an increase of 27% measured to its highest point today at $39.723. Since then we have seen a minor pullback with the price currently being traded at $37,896 and moving to the downside again.
On the hourly chart, you can see that the price made a five-wave increase from Sunday and came slightly above the significant horizontal level that served as support now turned resistance. This is why the price struggled to keep up its upward trajectory and is now headed to the downside again.
From Sunday we have most likely seen the start of the next move to the upside as the corrective ABC of the highest degree ended. If this is true, then we are now seeing the first sub-wave of the next five-wave impulse coming to completion as is why the currently seen downside move would be expected to continue pushing the price further down. That would be expected to develop as the 2nd sub-wave of the higher degree count and it should now form a higher low compared to Sunday’s one, potentially around $36,000 where the next horizontal support is in line. But from there further upside movement would be expected and a breakout above the $42,000 horizontal zone.
Ripple has shown a recovery of 57% from Sunday’s low of $0.66 to $1.05 at its high today. But like in the case of Bitcoin is now making a consolidation move that is likely to continue pushing the price lower.
It is still sitting above the 1 Fib level which is a good sign but if the price ended its five-wave move it would now be expected to fall back down to potentially around $0.84 area where the next support level is or even further down to the 1.272 Fib level area. There is a possibility that a higher high might come first if the five-wave impulse from Sunday hasn’t been completed but in either way, a retracement would be expected afterward as the 2nd sub-wave of the developing structure.
If the price ended its higher degree correction on Sunday, the increase seen from there is the starting impulse wave to the upside which would significantly recover the price in the upcoming period.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice. Cryptocurrency CFDs are not available to trade in all jurisdictions.
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