From last week on Friday when the price of Bitcoin was sitting slightly above $10000 we have seen a decrease of 18.16% measured to the lowest price has been which is at $8195 made yesterday. Since then we have seen another attempt of a recovery as the price has started to increase again but is struggling to get past the $8732 level.
Looking at the hourly chart, you can see that this decrease from last week’s high was made in a five-wave manner with yesterday’s low presumed to be its ending point. This is why the current upside move is considered the be the A wave from the now developing ABC to the upside which is corrective in nature and could bring the price back to the $9000 area where it will retest the broken support levels, both horizontal and ascending one.
If we see the price hold above the $8500 level and continues increasing beyond the $8732 one it will likely continue as outlined, but if the price continues moving to the downside and breaks the $8500 again it could indicate that the 5th wave out of the previous wave to the downside hasn’t ended in which case we are to see it’s development. In either way, since this recovery appears to be corrective I would be expecting to see a descending move after it retests and gets rejected at the mentioned support point.
The price of Ripple has decreased by 16.8% from last week when it was sitting slightly above $0.22 and fell from there sharply to $0.187 level at first and continued moving even lower to $0.184 after some sideways movement. Now the price is back above the level of the previous lower high but is struggling to move above the $0.2 mark.
On the hourly chart, you can see that it’s started to increase again after an interaction with the $0.18939 horizontal level which was retested and provided support of the falling price. Since we have seen a bounce on the lower low we could be seeing the start of another corrective stage which is the 4th wave of the higher degree five-wave impulse to the downside or like in the case of Bitcoin, the start of the news ABC as the impulse wave ended.
The price reached its first resistance point and now from the interaction, we are to see the further directional likelihood. If the price continues moving past the $0.2 mark an interaction with the $0.204 and the 1.272 Fib level could occur, but if it starts decreasing from here it could very well be further lows straight away for the price of Ripple.