BTC/USD
From yesterday’s high at $5222 the price of Bitcoin has decreased by 4.58% measured to today’s low at around $4980 which was only a quick spike as the hourly candle closed at $5031. Since then the price has made a slight recovery and is currently in an upward trajectory sitting at $5106.6.
Last week the price of Bitcoin experienced sideways movement from Monday until another spike to the upside was made to $5483.5 on Wednesday. But straight after the price started plummeting down with strong momentum and made a downfall of around 10% in one go as it came down to $4935.7 on Friday. This downfall has led the price below the support line of the ascending channel but the price managed to go back inside its territory.
As the price continued increasing it was hovering around the support level. But since it came up to the significant resistance and got rejected after the interaction the support level was broken yesterday.
If the price action movement from 5th of April till 10th was correctional, and I believe that it was as the wave structure looks more corrective than impulsive, we are most likely seeing the continuation of the higher degree three-wave correction. In this case the downside movement which started yesterday would be the C wave of the third ABC correction.
This three-wave correction would be the 4th wave out of the higher degree five-wave impulse wave. So after it ends another final increase would be expected. But if the 5-10 April increase was the 5th wave and the previous three-wave downfall was the 4th, we could see the start of the impulse wave to the downside which started on the 10th of April.
From here the price is expected to go to another low, potentially ending on some of the minor horizontal support levels in the $4800 zone.
XRP/USD
From yesterday’s high at $0.33307 the price of Ripple has decreased by 5.7% measured to its lowest point today which is at $0.3141. The price made a small recovery to $0.32328 but again started decreasing and is currently sitting at $0.3206.
On the hourly chart, we can see that the price broke the support around the 0.236 Fibonacci level on yesterday’s downfall and has found support on the minor horizontal support level and the significant ascending trendline which is the “baseline support” from July 2017. It offered to serve as the last support point but the price went above it numerous times which makes it only as a significant oriental point.
Looking at the wave structure, we can see that the price is most likely in a three-wave correction from 5th of April when the spike to the upside was made above the 0.5 Fibonacci level. If we are seeing the development of the third correction more downside would be expected as the C wave should develop fully. The price could make another low to the lower horizontal support level at around $0.3131, but depending on the momentum we might see a deeper spike.
Trade BTC on FXOpen Crypto accounts.
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.
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.
