BTC/USD and XRP/USD – strong resistance encountered

Contents

BTC/USD

On yesterday’s open the price of Bitcoin was sitting around $8985 as the price came down to the descending trendline after an interaction was made with the 0.382 Fibonacci level on Sunday. From there the price made another attempt to surpass the Fibonacci level but the interaction again ended as a rejection causing the price to pull back to $9058 at its lowest point today and is currently being traded at $9134. BTC/USD and XRP/USD - strong resistance encounteredOn the hourly chart, you can see that the price has increased from last Monday and managed to go above two significant horizontal resistance levels – first being at $8140 and the second around $8500, which indicated strong bullish momentum. As the price increased parabolically the next and the most significant horizontal Fibonacci level was reached and has been interacted with for two times with the interactions ending as rejection the price hasn’t managed to break out to the upside.

This could mean that the bullish momentum caught from last Monday isn’t strong enough to surpass the mentioned significant resistance at around $9400, so we could see a steeper pullback before another attempt. If we see a pullback the price would likely find lookout for support around the broken resistance point on the way up, so a retest of the $8500 would look likely. But if we saw the end of the bullish rise altogether, the price would continue moving further to the downside.

As the five-wave impulse to the upside from 26th of April likely ended on 30th of May the price action movement we are now seeing is viewed as corrective in nature with the increase was seen from last Monday being its second wave. This means that now the third wave to the downside should start shortly as a retest of the most significant resistance occurred, but if the price continues moving above the 0.382 Fibonacci level it could mean that the five-wave increase previously seen hasn’t marked the end of the higher degree 5th wave of the Minor count and that another impulse wave to the upside is developing.

XRP/USD

From yesterday’s low at $0.4277 the price of Ripple increased by around 6.83% coming to $0.4568 at its highest point today, but since today’s high the price started moving to the downside and fell to $0.433 at its lowest spike.

BTC/USD and XRP/USD - strong resistance encountered

Looking at the hourly chart, you can see that the price made an interaction with the 1 Fibonacci level which was the significant horizontal resistance point on the previous two increases which the price slightly surpassed but immediately after decreased impulsively, going back below it to the 0.5 Fibonacci level at $0.36952. The price was increasing from last Monday, the 10th of June, until today when the interaction has been made with the mentioned significant horizontal resistance. Since an increase of 19.86% has been made and the price failed to break out to the upside, we are now likely going to see it pulling back to some of the significant support levels out of which the first one would be at the 0.786 Fib level which is in price terms at $0.4177.

But if the increase seen from last Monday was the second wave out of the starting downtrend of a higher degree, the price would continue moving further to the downside below the 0.5 Fibonacci level.

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

with No Comments 1072
Scroll Up