The price of Bitcoin has been on the rise since the 20th of July when it fell down to $29.316 at its lowest point. From there we have seen an increase of 38.7% as it came up to $40,679 at its highest point yesterday. Today the price fell down to $36,500 area and is now moving to the upside again, but the downfall of 10% might be indicative of the completion of the prior upward movement.
You can see that the price almost reached its most significant resistance zone at around $41,000 but failed to make interaction. The upward move from the 20th of July was impulsive in sections but the wave structure doesn’t imply a five-wave pattern. Instead, we could be looking at an ABC correction to the upside before the next downward move. The upward movement looks completed either way so now at least a retracement would be expected if not a start of a new downtrend.
The price of Ripple has shown a similar pattern as from the July 20th low of $0.516 we have seen an increase of 31.16% coming to $0.6772 at its highest peak yesterday. After that a decrease was made to around $0.613 and the price is now in a slight recovery. Like in the case of Bitcoin this upward move has most likely ended in a five-wave manner, although the structure isn’t as clear. It reached its significant resistance level and made a sharp decline after the interaction was made. This is why now we are expecting this recovery to be short-lived and another move to the downside from which we are to see if this is a correctional count or the start of another downtrend.
If the prices of both cryptos start increasing again and make a higher high compared to yesterday’s one this descending move scenario would be invalidated, but that isn’t likely at this point.
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.