From yesterday’s low at $7775.2 the price of Bitcoin has increased to a significant horizontal level at $8500 today which is an increase of 9.38%. I was expecting that the level would serve as support on the way down, but the price continued moving below it which is why today we are seeing a retest of level for resistance. Currently, the price is being traded slightly lower at around $8357 as the price got rejected.Â Looking at the hourly chart, you can see that after a breakout from the descending triangle the price continued moving to the downside and fell below the support level with strong momentum. As we are likely seeing the development of the Y wave from the 3rd WXY correction to the downside we are soon to see the completion of the downfall, and if the price is moving in a five-wave manner the recovery we’ve seen from yesterday could be the 4th wave, especially considering that it has developed in a three-wave manner which indicates corrective structure .
As the price has retested the level and is looking like it found resistance we could now see another drop starting which would be the 5th wave. If this is true then the price would soon start another move to the downside potentially ending at around $7389 but as it approaches the vicinity of the significant support intersection it might move a bit further to the downside to around $7000 as a retest of the support point.
Another possibility would be that the Y wave developed in which case yesterday’s low would be its lowest point and with the recovery seen being its first recovery wave. But as the momentum was strong on the way down I don’t believe that’s likey. This will be confirmed by the $8500 level as if the price continues moving above it, it could mean that the recovery started.
The price of Ripple has decreased by 30.19% from the 18th of September when it spiked to it’s highest at $0.32504 measured to the last Tuesday’s low at $0.22725. From there we’ve seen a recovery starting to develop with the price reaching around $0.26138 today which is a recovery of 14.72%.
On the hourly chart, you can see that the price came down below the lower horizontal level on the previous downfall which was the support level from the horizontal range in which the price has been consolidating after the mentioned spike to the upside. This strong bearish momentum had led the price into the buyer’s territory which is why buying was activated but considering the vicinity of the upper horizontal level which now serves as resistance, it is unclear whether or not the increase would continue.
If we see the price move above the $0.26617 level the increase will likely continue, but if the price interacts with the level and finds resistance there further depreciation could be expected.