BTC and XRP – Downside expected as significant support has been breached

BTC and XRP – Downside expected as significant support has been breached

BTC/USD

From yesterday’s open when the price of Bitcoin was sitting at $9988.8 which was it’s highest point, we have seen a decrease of 4.71% as the price came down to $9518 at it’s lowest point today. Currently, the price is hovering around those levels and is sitting slightly higher at around $9564.Looking at the hourly chart, we can see that the price has broken out from the ascending support level, significant uptrend support from the ascending channel in which the price has been since December last year. On the 18th of December, the price has been sitting at $6544 and from there to its highest point this year at $10490 made on the 13th of February made an increase of 60%.

As we are now seeing a breakout to the downside from this ascending range it could indicate that the price increase has ended and that we are seeing the development of the descending wave. The fact that the price retested the ascending support for resistance after a breakout has been made and got rejected there makes this possibility more probable. It is worth noting that the price made a higher low compared to the prior one which had a large wick but a series of lower highs with spikey price action is confirming a downtrend.

This is why a lower low would be immediately expected, most likely to the 1 Fib level or somewhere around its vicinity, but if the correction of the same degree as the ascending channel wave, the price is set to go significantly lower then $9127.7.

XRP/USD

On yesterday’s open the price of Ripple was $0.2839 and from there to it’s lowest point today so far which is at $0.2626 made a decrease of 7.51%. Like in the case of Bitcoin, Ripple’s price is also still hovering around those levels. but unlike Bitcoin, Ripple’s price chart made a lower low compared to the previous one at around $0.267.As you can see by looking at the hourly chart the price made inside the territory of the lower range below the significant horizontal level at $0.266 where the 0.5 Fibonacci level is. This could be an early indication that the price is going to continue moving to the downside potentially even below the 0.786 Fibonacci level which was outlined as a scenario in the previous analysis but the decrease could stop on some of the higher support levels like the 0.618 Fib or the $0.24730 horizontal.

If the price, however, spikes to the upside in the following day it could mean that this breach below the $0.266 level was a dip that retested the vicinity of the prior low’s spike looking to activate another round of buying that is needed for the price to catch up some upward momentum.

 

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.

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