Bitcoin BTC/USD Price Watch

Over the weekend the price of Bitcoin came up from $3632 at Friday’s open to $3750 at the highest point on Saturday which was only a quick spike as the hourly candle closed at $3705. The spike entered sellers’ territory so the selling was activated and caught momentum which started pushing the price to the downside at first to the minor horizontal support level and then below it to the 0.236 Fibonacci level or in price terms $3474 at the lowest point today.

Looking at the hourly chart above you can see that the price has created a cluster around the 0.236 Fibonacci level as it is looking for support there after the sellers have pushed the price in a downward trajectory.

The price is now likely heading towards the lower interrupter purple line which is the descending wedge support level in which the Minor WXYXZ correction occurred from 24th of December when the price of Bitcoin reached $4374.

According to my Elliott Wave count, the Minor correction is about to end as the Z wave looks near completion and considering that every corrective wave ending point was on the wedge levels validating them along the way, so would the Z wave most likely end on the interaction with the wedge support.

This might not happen in a straight line as the price is in the 4th Minuette impulse wave which is corrective and could lead up the price of Bitcoin to the prior horizontal support (purple line) for a retest before the 5th wave starts. This would be unlikely but there is a possibility still.

The target for the ending point of the Z wave and the current down move would be at around $3430.

When this move ends this would be the end of the wave X from a higher degree count so another impulsive move is expected as the Y wave should start developing.

From Friday’s open at $119.5 the price of Ethereum has been going sideways over the weekend before finally going down further as it broke the horizontal support of the range in which it was going sideways and continued moving lower to $104.73 horizontal support level which was pointed out as a possible target for the end of this decrease in some of my previous analysis.

Looking at the hourly chart you can see that the price of Ethereum went further below the $104.73 level but only left a wick on the hourly chart as buyers have quickly started holding the price above it which indicates that the support is, in fact, present at those levels.

The question is whether or not the seller's momentum would keep on pushing those buying orders or would the support be enough for the expected reversal. By looking at the wave structure I would say that I don’t believe so as this is for sure an impulsive move which would mean that it should develop in five waves, and only three have developed so far with the 4th on the horizon.

We are most likely going to see some small correction which would be the 4th wave from the current impulsive move to the downside who would optimally end around the 0.382 Fibonacci level or in price terms around $108.5 before continuing its downward trajectory as the 5th wave should start developing whos target I see fit around $100 area or where the 0.236 Fibonacci levels is.

Like in the case of Bitcoin, according to my Elliott Wave count, this would be the end of the Minor Z wave so a reversal is coming which would be the Y wave from an Intermediate count whos WXYXZ Minor correction is the X wave.

From Friday’s open at $0.3234 the price of Ripple like in the case of Ethereum went sideways at first before it finally started moving strongly to the downside today and reached $0.29 which is a 10.52% drop.

The referee sideways movement was the Minuettte WXY correction so after it ended another move to the downside was expected as the Z wave started developing in an impulsive manner. The price found some temporary support at $0.294 horizontal support level which is now being retested as the price is starting to gain some upward traction.

On the hourly chart, you can see that the price of Ripple has like in the case of Bitcoin and Ethereum most likely in its final stages of the Minor WXYXZ correction so a reversal is soon to be expected.

The price is in its third wave from the second wave X so if it doesn't get extended by two more waves the recovery could start immediately but the current bounce doesn’t look strong enough to repel the selling momentum.

Most likely we are going to see another move to the downside after the price consolidates for a while potentially around the mentioned horizontal level at $0.294 before going to $0.28494

From Friday’s open when the price of Bitcoin Cash was at $129 measured to the current level on which the cryptocurrency is being traded which is at $108.9, we have seen depreciation in price by 15.71%.

On the hourly chart, you can see that the price found support on the first significant area around the vicinity of the C wave from an ABCDE correction inside the triangle which was the bearish pennant in December last year.

Like in the case of other cryptos the Elliott Wave count implies that this would be the end of the correction that started after the impulsive move to the upside ended on 24th of December, so a reversal is soon to be expected.

But as the price is currently on the insignificant enough level for strong support, needed to repel the sellers’ momentum and cause the trend reversal I believe that another low will happen before that reversal starts.

The target for that expected decrease would be at $104-103 level which is where some significant support could be found.

Disclaimer: Price analysis isn't meant to be trading advice. Invest at your own risk.

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