Bitcoin BTC/USD Price Analysis

Yesterday the price of Bitcoin was $3590 at its lowest point from where an increase has been made to $3666 but since the price encountered resistance at those levels it came back down and is currently sitting at $3604 which is close to the level of yesterday’s low.

Looking at the hourly chart you can see that the price of Bitcoin has been stuck in another range between the prior minor one’s resistance line which now serves as a support and the 0.382 Fibonacci retracement level which serves as resistance.

Currently, the price has started breaking the last uptrend support line as the price is below it, but since the price already went below the level and came back above it leaving wick on the hourly chart we can’t say for sure if the level got broken.

If the price goes lower I wouldn't expect it to go below the horizontal range support line at around $3950 as the price already interacted with the level previously and left a wick on the hourly chart indicating that the buyers are in fact there.

The wave structure looks similar to that before the 12345 move to the downside when the price of Bitcoin fell from $3825 to $3566, so this implies that we are likely seeing another WXY correction to the upside. If this is true then we are going to see an increase to the upside soon when the price finds support either on the uptrend support line or the horizontal support level.

The target for the expected increase would be optimally around the next horizontal resistance level in line to the upside which is at $3718. The price could go higher although highly unlikely since there are numerous resistance points to the upside and strong momentum is needed, the momentum which we still haven’t seen for a while.

When this sideways movement ends I would be expecting further downside for the price of Bitcoin and a breakout from the current support levels resulting in lower lows and further lookout for support.

From yesterday’s low at $116.74 the price of Ethereum has been steadily increasing to $119.5 which was around today’s open. Since the price hit those levels it started decreasing again and has come down to $116.68, slightly below yesterday’s low.

On the hourly chart, you can see that the price is back on the horizontal support level (bold black line) which was established when the price of Ethereum came up impulsively to $157 on 24th of December after which this correction which I referred to as the Minor WXYXZ correction started.

As the market is strongly correlated all of the cryptos are showing a similar chart pattern especially those that are major in market cap, which is why we can say that the whole market is in a similar stage.

This current sideways movement that we are seeing is considered by me as the second wave X so after it ends I would be expecting the final wave Z to the downside and considering the price of Ethereum a breakage of the horizontal support level on which the price is currently.

The price action has created a descending triangle but I don’t believe that the price is heading down just yet.

As the market fractality and the wave structure implies we are going to see another increase at first, optimally to the vicinity of the Minute W wave ending point which is around the 0.5 Fibonacci level or in price terms between $120 and $121.3 which is the upper resistance line and a support from the prior range (purple line)

This correction, the Minueytte WXY (orange), might get prolonged by two more waves x and z which is why the price could end higher than projected but since this would mark the end of the second Minor wave X we are going to see a further decrease in either way.

The price of Ripple was $0.31799 on its lowers point yesterday. From there the price increased at first as it came up to $0.32457 but started decreasing again from there and came down to the levels of yesterday’s low as its currently sitting at $0.31802.

On the hourly chart, you can see that the price is back on its horizontal support in a lookout for support since yesterday’s high was a lower compared to the previous one which indicated that the sellers are in control, so they have pushed the price back to where the buyers are.

I have labeled the fractals that I was referring to and you can see that the Minute 12345 which was followed by a Minute WXY pattern resembles the Minuette count of the 12345 and the now developing Minuette WXY.

Then the price also held the at the horizontal support for three interactions before it made another attempt for a breakout to the upside which was the Y wave but ended as a fakeout resulting in further lows.

This is why I believe now we are going to see a similar pattern and the reason why I believe that the current support levels are going to hold for another bounce to the upside in an attempt for another breakout which would be the expected Minuette wave Y.

The price target for that expected Minuette increase would be around the prior range support which now serves as resistance which would be in price terms at $0.3281. According to my Elliott Wave count, this would be the end of the second Minor wave X from a WXYXZ correction, meaning that the Z wave should start afterward resulting in more downside for the price of Ripple in the upcoming period.

Disclaimer: This is not intended as investment advice. DYOR: Do your own research.

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