From yesterday’s open at $6766 the price of Bitcoin has increased slightly more than 10% as it came up to $7453 at it’s highest spike today. We have seen the continuation of the bullish momentum that started since the beginning of the month with the price currently experiencing resistance.
As you can see from the 4-hour chart, the increase has been stopped out at a significant horizontal level at $7413 which the next one in line to the upside after a broken $6914. Considering that we have seen a five-wave move since the 30th of March and that the price is retesting the significant resistance level we are likely to see a retracement now, especially considering that the ascending channel’s resistance level also matches the horizontal one creating a significant resistance point.
The increase might continue for a bit higher but would most likely, in that case, turn out to be a wick inside the seller’s territory which would be quickly pushed back below the currently tested level. This is why I believe that more likely we are to see the start of the minor descending move to the broken $6914 horizontal level and the ascending trendline which creates a support point that is to be retested if the price is to continue increasing past it’s newly found resistance.
If the price continues increasing from here it wouldn’t be doing so in a sustainable way and the move above the current resistance would most likely end as a fakeout. But if the price tests the $6914 area and finds support there the increase which could follow can be a sustainable one.
For now, the ascending structure looks corrective in nature and has made two consecutive three-wave moves with the current, third one showing a five-wave pattern we could have seen the ABC correction to the upside in which case from here the price is to continue moving lower.
The price of Ripple has increased by 13.19% from yesterday’s low at $0.17856 coming to $0.2021 at it’s highest point today. We have seen the price in an upward trajectory but has just now started showing signs of struggle to surpass it’s prior minor high.
On the hourly chart, we can see that interaction has been made with the horizontal resistance at $0.204 but only as a quick spike. The price is now looking to continue increasing but it encountered strong resistance slightly below the 1.272 Fib level which can also be retested before the end of this increase. A breakout has been seen from the ascending structure unlike in the case of Bitcoin but this is still unconfirmed trendline which is why we can’t say conclusively.
As the price approaches it’s significant resistance we are most likely to see further retesting but a pullback would be expected before a breakout to the upside can be seen. It might come back to the 1.618 Fib level or find support at the $0.189 one but the upward trajectory the price has been in is not expected to last for much longer without some establishment of support.