BTC/USD and XRP/USD in a minor retracement



From last week’s analysis on Tuesday, February 5th when the price of Bitcoin was $3501 the price has decreased at first as the resistance there was too strong for it to break out. Then the price has fallen to $3437 where it was hovering around in a minor horizontal range until Friday, when BTC started increasing exponentially and went from $3440 to $3800 at it’s highest spike. It was an increase of 10.5%.

BTC/USD and XRP/USD in a minor retracement

As the price came up to the mentioned levels and interacted with the 0.5 Fibonacci level, we saw a retracement to the 0.328 Fibonacci level on which the price has retested it for support. The price is currently in an upward trajectory. But since there is a strong resistance point above it even if the price action has created a Bull flag, we might not see a breakout just yet, as the price needs to establish firm support first.

The current horizontal support level is not that significant as the next one, so the horizontal resistance at $3783 will be a point of struggle. That is why strong momentum is needed for a breakout. And considering that the momentum has been all used up on Friday we are now likely going to see further retracement, potentially all the way back to $3553 where the previous minor horizontal level is before a continuation and a breakout to the upside.


From last Tuesday when the price of Ripple was around $0.3 we have seen an increase of 1.48% measured to the current level of $0.30674. The price increased further on Friday and went to $0.325 but since it encountered some strong resistance at those level an immediate retracement took place.

BTC/USD and XRP/USD in a minor retracement

Looking at the hourly chart, you can see that the price is in the corrective stage of the Minor correction inside the falling wedge. The Friday’s increase was to its resistance line and has been interacting with it ever since. The retracement is expected to continue for a bit more as the price has gone down to the horizontal support level at $0.3021. So the support found there might lead to a breakout and that is if the Minor Z wave ended.

On the chart above the correction is labeled as not finished to layout the possibility. But I did end on the now labeled Y wave, and that is why I think the increase we have seen on Friday is the beginning of a breakout. If this is not the case then the price is headed below the mentioned horizontal support level from which we can see the validity of the projected scenario.




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 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

Cryptocurrency Prices Rise on SEC Rumours Market Analysis: Bitcoin Sets September High BTC/USD Analysis: Bulls Lose Progress Amid SEC Defeat Bitcoin Trading Volumes Fell to a Minimum of 4 Years BTC/USD Price Analysis: RSI Drops to Lowest Since March 2020

Latest articles

Forex Analysis

Market Analysis: The Yen and European Currencies Headed to New Lows

The main currency pairs began the last five-day trading period of September with a new wave of growth for the American currency. Changes in the Fed's point forecast for next year provided powerful support to the dollar, which, in turn,

Forex Analysis

Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience

In an intriguing turn of events, the US Federal Reserve has hinted at the possibility of yet another interest rate hike in the near future, keeping financial markets on their toes. During its September 2023 meeting, the Federal Reserve chose

Forex Analysis

USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar

The reason for the stable trend, as we have repeatedly pointed out, is the difference in the monetary policy of the USA and Japan. Inflation in Japan has been above 2% for more than a year, and the media are

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.