Bitcoin BTC/USD Analysis
From yesterday’s low at $5437 the price of Bitcoin has increased by 3.97% as it came up to $5652 at its highest point today. Currently, the price is being traded slightly lower but is holding above the $5615 level which is a good sign.
On the 15-min chart, we can see that the price of Bitcoin exceeded the horizontal resistance level at $5562 and came up to the vicinity of the prior high which is the presumed 5th wave out of the Minute count. The price also came close to the significant interrupted ascending trendlines which haven’t been confirmed still but have proven to offer strong resistance in the past.
As the price moved to the upside in a five-wave manner from yesterday’s open I am considering that the increase seen from Friday could also be a higher degree five-wave move which could, in that case, be the start of the next impulse wave to the upside.
The structure looks corrective which is why I am hesitant to call out the increase as the beginning of the next move to the upside of a higher degree an, in particular, considering that none of the significant levels have been broken.
The price did go over the horizontal resistance at $5562 but it’s still inside the territory of the ascending channel from 3rd of April which is considered to be a correctional structure after the 3rd wave of the Minute count ended.
The Minute five-wave increase ended according to my count which is why I was expecting a higher degree move to the downside which would have been the 4th wave out of the higher degree impulse wave.
This 4th wave could have ended on the last Friday’s low in which case the increase that followed could be the start of the 5th impulse wave to the upside, but until we see a proper breakout nothing can’t be said conclusively.
Ethereum ETH/USD Analysis
From yesterday’s open at $158.2 the price of Ethereum has increased by 8.75% as it came up to $172.4 at its highest point today. Since then the price has decreased slightly and is currently sitting at around $168.5
On the 15-min chart, you can see that the price of Ethereum moved impulsively to the upside and in a five-wave manner. As the increase ended now we are likely to see a pullback to around $162 level if this was the start of the next impulsive move.
The price came up to the 1 Fib level which level of the previous high which serves as significant resistance point and is the reason why we’ve seen an immediate pullback below it after the interaction occurred.
Zooming out on to the hourly chart you can see that the interaction with the significant descending resistance level has been made which is the outline of the descending channel inside whose territory the price has been since 8th of April.
As an interaction ended as a rejection a higher degree retracement would now be expected from whose depth and momentum we are to reevaluate the count. As you can see the price action is in a corrective stage which has been labeled as an WXY correction which might not have ended in which case we are seeing another lower degree ABC correction to the upside.
If this is true, then the price of Ethereum will go below the horizontal blue line at around $165.5 which is the ending point of the previous increase, but if the price finds support there and continues increasing again and starts going above the descending resistance line we have likely seen the end of the WXY correction as this move would develop as a five-wave impulse.
Bitcoin Cash BCH/USD Analysis
From yesterday’s open at $229.8 the price of Bitcoin Cash has increased by around 20% measured to the higher point the price has been today which is at $276.8. Since then the price has pulled back slightly and is currently sitting at around $265.
Looking at the 15-min chart you can see that the price of Bitcoin Cash increased in a five-wave manner from yesterday’s open which indicates impulsiveness and considering the fact that the increase made was around 20% it could definitely be the start of a higher degree impulse wave. If this is true then the price is now headed for a higher degree 2nd wave which is corrective in nature and could bring the price back by around 8% from the current levels as a retracement to the 0.618 Fib level or the next one at 0.786 would be expected.
If this occurs the price of Bitcoin Cash is set to complete a retracement around $240 area before we see an uptrend continuation, but if the price continues moving lower then the levels of the yesterday’s open the projection would get invalidated.
Zooming out on to the hourly chart, we can see that the price of Bitcoin Cash is still inside the territory of the descending channel in which it was since 15th of April and has come up for interaction with its resistance level where resistance was found.
The structure looks corrective as I’ve counted the sub-waves which have shown the end of the WXY correction count. As after the presumed Y wave ended we’ve seen a five-wave impulsive increase it looks like the correction might have ended but since the price is still inside the territory of the corrective structure we could be seeing the prolongation of the corrective structure in which case the today’s increase would be the second wave X.
This will soon get validated as the price has ended its five-wave increase so a retracement would be expected before the price could breakout from the structure on the 3rd and the wave with usually the highest momentum.
The market has experienced an increase in the last 24 hours with the prices of the major cryptos showing signs of impulsiveness. This could mean that the next impulsive move to the upside has started but as the prices of the major cryptos covered in today’s analysis are showing signs of weakness as they’ve met with their significant resistance points this increase might be a further prolongation of the correctional movement from the beginning of April.
No clear confirmation was made which is why it is still awaited and will be seen a breakout from the currently seen correctional structures with whose resistance levels the prices have interacted with today.
Disclaimer: This analysis of the crypto market is not meant to be investment advice. Do your own research as all forms of investing are risky.
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