BTC and XRP – Correction likely started

BTC/USD

From yesterday’s low at $5883 the price of Bitcoin has increased by 11.3% as it came up to $6548 at it’s highest point today. Currently, the price is being traded slightly lower but has started to break out from the descending triangle on the upside which was formed after today’s high.

On the hourly chart, we can see that the price managed to come above the $6266 horizontal level which is a significant one but has now entered the seller’s territory and is experiencing pressure from their side. This rise of over 11% occurred after a five-wave move to the downside was seen which is why I believe it is corrective in nature and we are to see another five-wave move to the downside after it’s completion.

If that is true then it would develop and three-wave ABC Zigzag of a higher degree for which the C wave would come to around 0.618 Fib level at around $5420 which confirms the projected length of the presumed A wave on to the current ending point.  Another possibility could be that the B wave hasn’t developed fully with the currently expected downside move being it’s second wave after which one more to the upside would start which is set to slightly exceed today’s high. This depends on the A wave’s sub-wave 5’s ending point, as if was like now labeled the B wave hasn’t ended, but if it ended on the descending channels support level at $6000 then the B wave ended with the expected downside move being it’s starting C wave.

XRP/USD

The price of Ripple has increased from yesterday’s low at $0.163 to $0.17619 which was an increase of around 8%. Since then we have seen a slight decrease but the price is still hovering above it’s significant support level.

Looking at the hourly chart we can see that the price has been in an uptrend since the 16th of March when it came down to $0.129 at it’s lowest spike and from there made a five-wave increase of around 45.9%. This is why I believe we are seeing the start of the correction from the same degree out of which the current structure is its 2nd wave, B.

The move to the downside which is expected to start shortly would, in that case, be the C wave or the 3rd wave if the next move is another starting impulse to the downside, but in either way further decline would be anticipated to at least somewhere around the significant horizontal level at $0.152

Nikola Lazić

Expertise: Cryptocurrencies, Technical analysis, Elliot waves, Fibonacci
Nikola has a bachelor degree in Sociology, which gives him the edge in the financial market, knowing a lot about herd mentality. That is why he uses Elliot wave principles mostly, in combination with Fibonacci levels. He started learning more about financial markets back in 2015 and is now a full-time trader.
As an anarcho-capitalist, he fully supports the vision of decentralized future offered by cryptocurrencies, that’s why his attention and interest are mostly focused on them. His analysis has been praised by some of the most influential people from the cryptocurrency scene, like Jeff Berwick, the founder of The Dollar Vigilante Newsletter, Vit Jedlicka, the president of Liberland, and other trader colleagues.