From yesterday’s low at $11807, the price of Bitcoin increased by 5.76% and came up to $12487 at its highest point breaking out from the significant horizontal resistance level above the psychologically interesting level of $12000. Since then we have seen a minor retracement to $12224 with the price currently being traded at $12307 but it looks like it started increasing again as a minor local higher high is being made.
On the hourly chart, we can see that the price spiked to the upside in an impulsive manner from yesterday but as it entered the seller’s territory started showing signs of a struggle and pulled back almost to the level from which it broke out but hasn’t made its retest for support before another upturn looks like in development.
Looking at the wave structure this is the continuation of the impulse wave of the Minuscule count from Sunday and was its 3rd wave which indicates that the current retracement we have seen today is a local one as the 4th wave developed. Now the final one to the upside would be expected as another minor attempt of the same degree to validate the breakout but is likely to continue pushing the price upwards for much longer.
Instead, we are yet to see a proper pullback from the higher degree if this was the completion of the five-wave move but more likely we have seen another ABC correction to the upside out of which the currently seen lower degree impulse was its C wave. This is more likely due to the price structure around its beginning point which resembles the prior one made between 2nd and 4th of August.
If we have seen the completion of the ABC correction to the upside, after another local increase we are to see the price entering the lower range from which it broke out but if the bullish momentum is to continue the price is likely to find support at the horizontal level retest around $12000 which is why we are considering this as a significant pivot point which will provide an early indication as to what’s likely to develop next for the price action of Bitcoin.
The price of Ripple has increased by 8.96% from yesterday’s low at $0.29928 and came up to $0.32608 at its highest point but today came back to $0.31 area around where it is currently being traded and is still in a downward trajectory.
Looking at the hourly chart, we can see that a similar price progression occurred to that of Bitcoin as from the 12th of August we have seen a three-wave move followed by an impulsive increase to the upside. This is why I believe that we are more likely seeing a corrective increase instead of an impulsive one which is set to bring the price of Ripple into new highs, and was instead the part of the same correction structure of the higher degree from the 2nd of August who’s high was retested yesterday and the price found resistance, retracing once more.
Another attempt would be expected from the current levels for a proper breakout but it appears that the five-wave impulse from last week will be completed which is why a downturn would be expected to start after.
From this downturn, we are to see if the possibility of this increase being corrective or impulsive is more likely especially by looking at the momentum behind the expected decrease.