From Sunday when the price of Bitcoin retested the $8506 level and found support there we have seen an increase of 5.8% measured to its highest point yesterday at $8963. Currently, the price is being traded slightly lower after a minor retracement and is now in an upward trajectory, sitting at $8889.
On the hourly chart, you can see that the price increase was straight up and that this downside move made since yesterday’s high was its first corrective move. Thus, we might see a further decline before further uptrend continuation occurs. The descending move would serve to retest some of the prior resistance levels for support especially the horizontal one of a lower range at around $8682 where the previous higher low ended.
If we are seeing the development of a three-wave correction to the upside another impulsive move would be expected after the development of the current retracement which could push the price of Bitcoin to test the descending channels resistance level which would bring the price up above $9000 again, but as this would be the 4th wave out of the five-wave move to the downside another lower low would be expected.
An alternative possibility would be that the ABC correction of a higher degree ended on the interaction with the $8506 level in which case we are seeing the development of the first wave out of the higher degree impulse wave to the upside, but in either way, from here I would be expecting further decline and retesting of support.
The price of Ripple has also been following the market’s trend and recovered from Sunday’s low at $0.22556 by 7.3% coming to $0.24204. Since yesterday we have seen a minor retracement and another move to the upside with the price being traded at $0.23782 at the moment.
Looking at the hourly chart, you can see that I have outlined two possibilities that could be in play. Both are assuming that we are seeing an ABC to the downside but the difference is that in the main one further decrease can be seen as this range in which the price has been since the 26th of February can be the 4th wave out of the five-wave C to the downside. An alternative would be like in the case of Bitcoin that the ABC correction ended on Sunday’s low but considering the wave structure, I don’t believe that it’s as likely.
This is why we are going to look at the descending triangle’s resistance level for an early indication with whom we might see another interaction today.