Bitcoin BTC/USD Price Analysis

Over the weekend the price of Bitcoin has been increasing and came up from $3470 which was its lowest point on Friday to $3563 which was the highest point on Sunday’s open and is an increase of 2.68%.

Friday’s low was the higher low and the second point of the ascending channels support line which started to be outlined then after the price increased and was broken yesterday again. The breakout occurred after the price encountered resistance on Sunday’s open which has around the vicinity of the prior high and just slightly above it making it the end of the Minuette Y wave.

Now that the price has broken the support another impulsive move to the downside has started, but not before the prior support gets retested which would likely be the second wave of the expected decrease.

The ascending channel was the 4th wave from the impulsive move of a higher degree and is the Z wave from the Minor WXYXZ correction that started from 24th of December. As the correction formed a falling wedge (interrupter purple lines) it is likely that the Z wave would end on its support since other waves had also and the lines were well respected.

The intersection of the falling wedge support and the horizontal support are is of interest and a probable target zone for the ending of the Z wave, which is in price terms between $3367 and $3340.

From Friday’s low at $106 the price has increased over the weekend by 7.77% as it came up to $114.28 on Sunday’s open. From there the price has started another minor downtrend and is currently sitting at $108.68.

Looking at the hourly chart we can see that the price action formed a cup and handle but now a similar structure developed forming and the price is again below the minor uptrend support line like it was on the last X wave from a Minuette WXY correction.

This could indicate that another increase is to be expected potentially resulting in a higher high at around 0.382 Fibonacci level if the ascending structure continues with two more waves and ends as an WXYXZ correction to the upside. But I don’t believe that there is enough momentum at the moment for that but rather we are more likely seeing the start of another impulsive move to the downside in which case the price could increase but not above the prior high labeled as the Y wave.

That would be the second Minuette wave which is corrective and considering that the price is currently in a minor cluster between the uptrend support which now serves as resistance and the horizontal support level and is bouncing between then we can say that the second wave has already begun.

After a breakout to the downside from the current cluster, I would be expecting the price to go below the previous Minute degree low at $104.73 to the lower level of the support zone which is around $102 or even lower to around $95. But after one more low a reversal is expected and a recovery period for the price of Ethereum.

On Friday the price of Ripple was around $0.32 at the open. From there it started a downfall and came down to $0.301 but only as a wick on the hourly chart as the candle closed at $0.3041 where the price is also sitting at the moment.

Looking at the hourly chart you can see that the price is on the horizontal support level from the triangle that was formed since the price interacted with the descending wedge resistance on Friday’s open. As the is at the apex of the triangle we are going to see a breakout any time soon and the most likely is that the breakout would be to the downside since the triangle is a descending one.

The Friday’s open interaction with the falling wedge resistance was the second wave X from the Minor WXYXZ correction so the current movement to the downside is the last wave Z. The ending point of the Z wave is projected to be on the intersection of the falling wedge support line and the horizontal support at $0.266

The last Z wave will most likely be a five wave correction which is why another interaction with the resistance line of the falling wedge could occur but essentially the price is heading for a lower low than the one labeled as the Y wave at around $0.287

From Friday’s low at $110 the price of Bitcoin Cash has been increasing over the weekend and came up to $120 at its highest point on Sunday which was an increase of 9.18%. Since then the price has been retracing down and is currently sitting at $117.3.

Looking at the hourly chart we can see that the price of Bitcoin Cash is in a descending channel from 24th of December like in the case of other cryptos and the channel was formed by the Minor WXYXZ correction.

The correction looks like in the last stages but another low would be expected as a current ascending channel looks corrective in nature so another impulse to the downside is to develop which would end the Z wave on three waves.

If the Z wave is to end on the third wave than the current ascending channel could lead to a further price increase and the interaction with the descending channels resistance line before we see another downfall, but not above the horizontal resistance at $135.

The expected target for the Z wave ending point would be at the intersection between the horizontal support at $94 and the support from the descending channel but it could also get further low if the Z wave gets extended by two more waves.

Disclaimer: Authors opinions and analysis is not investment advice. Trade and invest at your own risk.

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