From Friday’s low at $4984, the price of Bitcoin has increased by 4.7% measured to the highest point today which is at $5218. Since then the price has started moving to the downside and has decreased by 0.87% and is currently sitting at $5174.3.
On the hourly chart, we can see that the price of Bitcoin found support at the ascending channel’s support level which has been unconfirmed before the Friday’s interaction as the price at first came down below it, but quickly made a recovery back inside the territory of the channel and has been in an upward trajectory supported by the channels lower outlined level. Now that the price came up to the lower resistance level from the ascending channel of a higher degree an interaction has been made which looks like it is going to end as a rejection.
If the lower interrupted level serves as resistance again the price is headed for a breakout to the downside from the minor ascending channel on whose support level the price has relied on to keep up the upward movement.
The ascending channel that we are seeing on the hourly chart could be correctional in which case it would be the 4th wave of a higher degree. If that is true than the upward movement that we have been seen from Friday could be the beginning of the next impulsive increase to the upside. But considering the lack of momentum and the significance behind the resistance point above it looks like the price is headed for another downturn before we could see some impulsive increase.
I have examined the last upward wave structure and have counted three waves with the current one still in development. As now the price is in a downward trajectory it the decrease stopped at around $5139 it could be the 4th wave out of the last five-wave increase which would mean that another retest of the upper resistance could occur as another interaction that could trigger the sellers.
As there are three waves the structure could be correctional as an ABC correction to the upside after we have seen a five-wave downfall which could be the second wave out of the higher degree three-wave move to the downside. In that case, the price of Bitcoin is set to go down to $4720 area. But if the current increase continues for two more waves it would most likely mean that we are seeing the development of the first wave to the upside of a higher degree.
From Friday’s low at $160.55, the price of Ethereum has increased by 6.14% measured to the highest point the price has been today which is at $170.41. Since today’s high the price has pulled back slightly and is currently sitting around $167.45.
On the 15-min chart, I have laid out some of the possibilities that could occur in the upcoming period, namely a bullish one and a bearish one. Since the price came up to the 1 Fibonacci level and found resistance there another minor downtrend has started playing out.
This last downtrend could be the 4th wave if the movement from Friday is impulsive and should have ended now in that case as it made an interaction with the 1st wave’s ending point. If this is the case, then the price of Ethereum would now make another higher high optimally to the next horizontal resistance level at $174.4 which would be the 5th wave from the five-wave move.
If the five-wave move from Friday develops it would mean that the previous decrease was the ending wave of the correction that took place from Wednesday, April 3rd, which would mean that the increase seen would be the start of the 5th wave of a higher degree impulse.
But if we see more downside now below today’s low and the ending point of the 1rs wave from last Friday, that would mean that the increase seen has ended as a three-wave correction to the upside and is the 4th wave out of a higher degree impulse to the downside which would, in that case, imply that the previous five-wave move to the downside was the 3rd wave of a higher degree count out of the impulsive move to the downside with further lower lows ahead.
This is why the $167.2 level is serving as a validation point between the two outlined scenarios and is considered to be a significant pivot point today.
The price of Ripple has been moving sideways from Friday more than other cryptos that have been recovering overall as they have made a slight increase. From Friday’s low at $0.32308 the price of Ripple increased by 4.06% on the following day as it came up to $0.33621 which was the weekends high as an immediate retracement occurred to $0.3247 which served as a horizontal support level over the weekend.
On the hourly chart, you can see that the price of Ripple managed to stay above the 0.236 Fibonacci level which served as support but the price hasn’t exceeded the Saturday’s high like in the case of other major cryptocurrencies.
As the sellers are clearly putting the pressure on the horizontal level a breakout to the downside could be expected, but since the price came down in a three-wave manner from April 3rd to the vicinity of the 1st wave of a Minor count ending point it could have been the 4th wave correction before another impulse wave to the upside starts.
If we see the price decrease further from here and enters the territory of the 2nd wave that would mean that the previously presumed 4th wave is actually the five-wave impulse to the downside which would likely mean that the price of Ripple is headed for more downside as the five-wave impulse to the upside ended. But since the structures look corrective I think that we are going to see an increase very soon after the currently seen sideways consolidation ends around the vicinity of the 1st wave’s ending point as it got retested on the 4th wave.
The prices of the top 3 cryptos according to the market cap have been more or less increasing from Friday. This increase could be the start of the next impulse wave to the upside which would be the last one out of the five-wave impulse that started on the 26th of March.
The other possibility would be that the increase seen from Friday is a corrective one which means that another lower low is to start developing shortly and would imply that the previous five-wave impulse to the upside ended.
This will shortly be validated as today the prices have made an interaction with the first wave’s ending point so it enters the lower range of the second wave’s territory the second scenario would be validated and vice versa.
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Disclaimer: Cryptocurrency market analysis and forecasting are for entertainment purposes only. It does not constitute investment advice. Please do your own research before investing your money.