BTC/USD and XRP/USD showing signs of weakness but another increase is likely to happen

FXOpen

BTC/USD

From last Tuesday when the price of Bitcoin was sitting around $4192 we have seen an exponential increase of the price of Bitcoin as on the same day it increased by around 17% in a matter of hours to $4894. The following the day the price continued its upward trajectory and has come up by another 8.15% before a significant pullback occurred on Friday when the price fell by approximately the same as the previous increase, as it came down from $5327 to $4861.9 which was a decrease of 8.73%.

BTC/USD and XRP/USD showing signs of weakness but another increase is likely to happen

Over the weekend the price continued increasing and came up to $5332 level again which has proven to be a significant resistance point as the price previously came to that level. It caused a sharp pullback, and has attempted another breakout yesterday but has been stopped out at those levels. Today the price again came close to the horizontal resistance level before starting to move to the downside again.

The price is still above the still unconfirmed ascending channel of a higher degree resistance level which serves as a minor support point as the price found support twice there after attempting to surpass the most recent high level but failed to do so. As we are seeing clear signs of struggle, the price is now most likely to attempt another run up which could exceed the prior high if there’s enough momentum in which case then I wouldn’t expect it to go past the $5562 horizontal level intersection with the upper ascending trendline which serves as resistance. The interaction with the area is expected but only as another attempt for the price to break out from the current structure which will most likely end as a rejection causing the price to start moving in a downtrend for a deeper retracement.

XRP/USD

Last Tuesday, the price of Ripple was sitting around $0.31362. From there the price increased exponentially by around 19% like in the case of Bitcoin until the following day when it reached $0.374 area. From Wednesday until Friday we have seen a sharp pullback of 11.57% as the price came down to $0.33 area but another increase with strong momentum was seen, recovering the price back to the levels from which the downfall was made.

BTC/USD and XRP/USD showing signs of weakness but another increase is likely to happen

Over the weekend we have seen a corrective decrease of the price of Ripple which pushed the price down to around the 0.382 Fibonacci level which serves as a support. Now that the interaction has been made with the Fibonacci level the price has started moving to the upside again. From the current upside movement, we are to see the likelihood of another upswing but since the wave structure hasn’t developed fully I think we are to see another increase which would be the 5th impulse wave out of the five-wave move to the upside.

Before the 5th wave should start developing the current correctional structure has to end, and we could see the prolongation with another move to the downside potentially before it starts. The price is set to interact with some of the upper Fibonacci levels for the 5th wave completion so the most optimal level I would be looking for is at the 0.786 or in price terms at $0.4177.

Try bitcoin trading with FXOpen broker!

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months Bitcoin Price Recovered over the Weekend, But Market Anxiety Remains Correction in Crypto Markets: BTC/USD Rate Drops to $60,000 BTC/USD Analysis: Bears Have Become More Active Near the $70,000 Level Today Is an Ethereum Update. ETH/USD Is Above $4,000

Latest articles

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

How Do Grid Trading Strategies Work?
Trader’s Tools

How Do Grid Trading Strategies Work?

Grid trading stands as a distinctive strategy within the trading realm, offering a structured approach to navigating market volatility. By strategically placing buy and sell orders at predefined intervals, this method eschews the need to determine the market direction, instead

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.