Last Updated on May 4, 2021
The price of Bitcoin has been on a decline from yesterday’s high at $59,000 and has made a 6.69% decrease measured to its lowest point today at $55.084. Now it is sitting slightly higher but is again looking like its struggling to keep up the recovery.
On the hourly chart, you can see that the price of Bitcoin was on the rise since the 26th of April when an ascending triangle was made. Yesterday, we saw a breakout to the downside from the triangles support, which could imply that this ascending move ended as the five-wave increase. If this is true then the five-wave move was most likely a leading diagonal from the next impulsive move to the upside as the previous correction of the higher degree ended.
Now we could be seeing the 2nd sub-wave of the next move to the upside which would retrace the price of Bitcoin to around $53,000 area most optimally where the 0.5 Fibonacci level is. This Fib level is standing in the vicinity of the significant horizontal support at $53,300 which might hold the price, but we could see the price going further down to the $51,221 area where the next one is.
After this retracement ends, according to the primary count, we are to see further uptrend continuation and new highs for Bitcoin.
Ripple has been on the rise since the 26th as well and made an increase of 73.6%, coming from $0.9519 to $1.662 at its highest point on Sunday. From there we have started seeing a retecement and the price is currently sitting at $1.432.
The increase seen from the 26th was a breakout from the descending channel in which it was from the 14th of April. This could imply that we have seen the completion of the corrective move and that a new wave to the upside is under development. If this is true, further uptrend continuation would be expected after the current retracement ends, but it is still unclear where the price could land on the current descending move. If this is the 2nd sub-wave of the next five-wave impulse we could see the price coming back to the 0.618 Fib level at around $1.229 or slightly higher at the 0.5 Fib level.
Another possibility could be that the retest of the 0.382 Fib level is going to come after which the price is immediately headed further up but that local correction would end up very shallow which usually isn’t the case with the 2nd wave.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice. Cryptocurrency CFDs are not available to trade in all jurisdictions.
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