BTC/USD and XRP/USD: more upside expected

FXOpen

BTC/USD

From the start of the week, the price of Bitcoin was in an upward trajectory and has come from yesterday’s open at $3580 to $3801 at its highest point yesterday. Since yesterday’s high, the price has been retracing and is currently sitting at $3729, which is an overall increase of 4.07%.

BTC/USD and XRP/USD: more upside expected

Looking at the hourly chart you can see that the price action has created a minor descending channel in which the price is retracing from the moment it hit the 0.5 Fibonacci level. As the wave structure looks impulsive, I believe that the move to the upside has one more wave to go. That is why after the retracement I would expect the price of Bitcoin to go up to $3880 before this move has ended.

The retracement could end on the 0.382 Fibonacci level, which would mean that the price could go further down to $3666 before increasing for another 5-6% measured to the $3880 level, but the price could increase further potentially all the way up to $3994.4 horizontal resistance before this move has ended.

Looking at the Elliott Wave labelings you can see that price is in the second stage X of the Minor WXY (orange), which means that if the X wave has ended on the Y wave of the Minute WXY (dark green), we are now seeing the start of the third Y wave impulsive move to the upside, which could push the price of Bitcoin higher than the previous high at $4367. But the Minute WXY might get prolonged by two more waves, which could mean that the current Minuette 12345 move to the upside is the second wave X and that another Z wave to the downside is to develop afterward.

XRP/USD

From yesterday’s open, when the price of Ripple was at $0.3215 the price has increased by 4.85% as its currently sitting at $0.33697. The price went higher yesterday and reached $0.348 at the highest point when it spiked up from $0.3261, but since the high, the price has been pulling back steadily.

BTC/USD and XRP/USD: more upside expected

On the hourly chart you can see that the price has spiked to the minor horizontal resistance level from the prior range and came back, closing the hourly candles below it. The price still hasn’t reached the lower level of the prior range. That is why I expect it to go a bit lower even though a minor interaction did happen before continuing its upward trajectory again. As the upward move looks impulsive I would expect another increase from here to the resistance line of the next range $0.35382 at least to $0.37 at max.

But when the increase ends I would be expecting to see more downside for the price of Ripple as the current move is most likely a corrective wave to the upside before a continuing for another downside move, which would be the end the Minor Y wave.

 

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