BTC and XRP – Retracement soon expected

BTC and XRP – Retracement soon expected

BTC/USD

The price of Bitcoin has reached it’s highest point this year yesterday, coming to $10163 but since then made a minor retracement of around 4.3% as it fell to $9726 at it’s lowest point today. Currently, the price is being traded at around $9774 which is slightly higher then it’s lowest point today and is hovering around those levels most likely retesting it’s support.

On the hourly chart, you can see that the price reached the same levels as the impulsive spike to the upside made on the 26th of October last year which is at the 0.786 Fibonacci level which served as a strong resistance point. Now the level repelled the price again which is why we have seen a minor retracement but if this was the end of the increase that started from the begging of the year the price could be headed further to the downside.

As you can see the price action started forming an ascending triangle of some kind with its apex coming above the 0.786 Fibonacci level and potentially to the next one at $10887 which is why we could see another increase to those levels before the pattern’s completion. This means that another increase might occur before the expected downturn which is set to push the price of Bitcoin for a retracement of a higher degree potentially again below $8000.

XRP/USD

Ripple has decreased by 6.64% today as it came from $0.2873 at it’s highest point yesterday to $0.26830 at it’s lowest today. The price is still being traded around the levels of today’s low and is retesting its vicinity for support.

Looking at the hourly chart, you can see that the price has come above the significant horizontal level at $0.26617 last Wednesday and managed to stay there over the last week but has now come back to retest it for support. This minor retracement has been made at the intersection with the mentioned horizontal level and the lower ascending trendline which is presumed to be the support level of the ascending channel which started forming from the 24th of January.

If the ascending channel is broken on the downside the price of Ripple will be set into a retracement of a higher degree most likely below the 0.26617 horizontal level and potentially to around the 0.786 Fibonacci one which will serve as the first support point to the downside. But if the price finds support at the 0.26617 horizontal level and interaction with the next significant one could be expected which would bring the price of Ripple close to $0.3.

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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