From last Monday when the price of Bitcoin was sitting on $8197 at it’s lowest level we have seen an increase of 21% measured to the highest point the price has been this Monday which is at $9926. Since then we have seen a minor retracement before another spike to the prior high with the price currently being traded at $9859.
Looking at the hourly chart, you can see that the price of Bitcoin made a retest of the horizontal resistance zone around $9800 area but has now managed to come above it. It hasn’t made past the highest point in May but we could see further price appreciation above it if the price manages to stay above the level and finds support here.
The previously expected scenario was that the price would increase in an ABC manner to the upside but somewhere below the interrupted ascending trendline which was broken on the way down, but it made a breakout above it. This could mean that instead of the presumed 2nd corrective wave to the upside we are seeing the development of the five-wave impulse that is the 5th wave from the previous count.
Although the increase from here looks like it could still be a corrective ABC which I am expecting to end around $10500 area where the next major resistance level is. Prior to this increase, we have seen an impulsive five-wave move to the downside which decreased the price by 17.2% which is why I am assuming that the higher degree move to the downside has started.
If the price manages to continue past the now interacted horizontal level an increase to the $10500 area would look likely, but if we see an immediate rejection this was another retest of the resistance area before the price could continue moving lower.
The price of Ripple has increased by 11.81% from last Monday to this one as the price came up from $0.186 to $0.208 at it’s highest point. Like in the case of Bitcoin since then we have seen a minor retracement but the price is back again around the levels of the prior high.
On the hourly chart of Ripple, we can see that the price has made several interactions with the 1.272 Fibonacci level but hasn’t faced a rejection and is, instead, putting further upward pressure as we have seen higher lows. This could be an ABC three-wave move to the upside in which case I would be expecting a short spike inside the seller’s territory above the mentioned Fib level before a hard spiky descending move like the last time the price was moving to the downside.
This would be in that case the 4th wave out of the next five-wave move to the downside of a higher degree, but if the price manages to move beyond the $0.21 area it would enter the territory of the 1st wave and invalidate the count, making it possible that this is the start of another impulse that is to lead the price of Ripple above the April high.