BTC/USD still under pressure while XRP/USD increased by over 18%

BTC/USD

Since last Tuesday the price of Bitcoin has increased by 2.41%, coming from $6327 to the current level at $6484.5.

Looking at the daily chart we can see that the price of Bitcoin interacted with the horizontal support level at $ 6256 last Wednesday. That is why we have seen this increase over the course of the last week to the next horizontal level at $6516, which now serves as resistance. Yesterday’s candle was a red one indicating that the price might get rejected by the horizontal level, but as today’s candle is a green one with a wick interacting with the level, we are yet to see if the rejection gets validated or was it just a correction before a breakout.

After the increase to above $7600 ended as a spike, I was expecting the price to interact with the descending triangle’s resistance line to retest it for support before a breakout could be considered. But as the price retraced by 100% and is now in an upward trajectory, I believe that the interaction will never happen unless the price falls straight down from here. As the price pulled back by 100% from the spike on Monday, October 15, it is still unclear whether this could be viewed as a “fakeout” or not because the price hasn’t quickly dropped inside the territory of the descending triangle. But it definitely shouldn’t be viewed as a breakout considering that the price retraced back to the same levels from which the increase was made.

Looking at the 4-hour chart you can see that the price has found support on the minor uptrend support line but is at the same time struggling to go past the $6516.5 horizontal support level.

The long wick from above indicates selling pressure. That is why we might see another decrease in price for the short-term.

Zooming into the hourly chart you can see that the Elliott Wave count implies that the up move is done or almost done.

The 5 wave could get a bit higher to the market zone but in both cases, I would be looking at more downside for Bitcoin in the upcoming period as after an impulsive 12345 a correction occurs according to the Elliott Wave Principle.

XRP/USD

From yesterday’s low at $0.464 the price of Ripple has increased by over 18% measured to the current levels but has gone on further up, spiking to $0.57. But the hourly candle has closed at $0.558, marking a 20.34% increase.

If we zoom out to the daily chart we can see that the price of Ripple has been experiencing a recovery after a correction pushed the price to its lowest lows at $0.26

The recovery by 107% has so far been measured from the mentioned low, but we might see another increase that exceeds the prior high at $0.5818 as the price is currently in an upward trajectory.

Zooming into the 4-hour chart you can see my Elliott Wave projection in which the recovery is done, or almost done.

The final wave Y can go up to the 0.5 Fibonacci level again. But as indicated by the wick from above it is highly unlikely, and that is why in the upcoming period I would expect that the price of Ripple cools off and undergoes a correciton.

 

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.

More Posts

By with No Comments 0 120