BTC/USD and XRP/USD recover, but for how long?

BTC/USD and XRP/USD recover, but for how long?

Contents

BTC/USD

Last Monday the price of Bitcoin was $10503 and spiked further to $10675 at its highest point. From there the price has decreased by 10.41% as it came down to its lowest point at $9417.9 on Thursday. As the price came down to its significant horizontal support level last Thursday and found support there a recovery has been seen of around 11% as it came up to the same levels as on last Monday.

As you can see from the hourly chart, the price has started to break out to the downside from the symmetrical triangle which was formed since the 26th of June but it found support on the previous low levels at 0 Fibonacci line which has caused a bounce to the 0.236 Fib level and is currently retesting the broken triangle’s support.

If the price gets rejected at the current levels it could be interpreted as a retest of the broken support which is set to cause another downfall with the price most likely going below the 0 Fib level which served as support potentially to around the $8500 area which serves as a the lower horizontal support level but if the breakout momentum increases it will likely not hold. As we’ve seen two WXY corrections the current structure is likely the third one which could either be a five-wave move or another three-wave correction but in either way from here I would be expecting further downside from here.

XRP/USD

The price of Ripple was $0.27788 at its highest point on Monday from where we’ve seen a decrease of 10.34% at its lowest point to $0.249 made on Thursday but as the price came down to its lower horizontal support level and found support there a minor recovery has been seen of around 6% as the price came up  to $0.2645.

Looking at the hourly chart, you can see that similarly like in the case of Bitcoin the price of Ripple has broken out off of the symmetrical triangle and started moving to the downside but made a recovery to its broken horizontal level for a retest. Unlike in the case of Bitcoin, the recovery seen is a minor one which could mean that the recovery would continue but as the price reached the vicinity of the upper horizontal support which now serves as resistance we could see a rejection.

If the price gets rejected at the upper horizontal level at $0.26617 we could see further downside for the price of Ripple but if the price manages to move above it and stays there we could see the recovery continuing to the most significant one at $0.29405.

Nikola Lazić

Expertise: Cryptocurrencies, Technical analysis, Elliot waves, Fibonacci Nikola has a bachelor degree in Sociology, which gives him the edge in the financial market, knowing a lot about herd mentality. That is why he uses Elliot wave principles mostly, in combination with Fibonacci levels. He started learning more about financial markets back in 2015 and is now a full-time trader. As an anarcho-capitalist, he fully supports the vision of decentralized future offered by cryptocurrencies, that's why his attention and interest are mostly focused on them. His analysis has been praised by some of the most influential people from the cryptocurrency scene, like Jeff Berwick, the founder of The Dollar Vigilante Newsletter, Vit Jedlicka, the president of Liberland, and other trader colleagues.

with No Comments 218

Share: