From Monday’s low at $5033.8 the price of Bitcoin has increased by 5.5% measured to the highest point of the week which was made today when the price came up to $5310.
Looking at the hourly chart, we can see that the price of Bitcoin came up to the significant resistance level from the currently seen ascending structure which has started from April 12th. As the price got rejected by the resistance found there a rejection has been seen with the price currently being in a downward trajectory.
Prior to the ascending structure, a three-wave correction occurred so this could be a consolidative range in which the buyers are taking control again. It could very well be the continuation of the mentioned correction in which case this could be its 4th wave if the correction got prolonged. In that case, another 5th wave to the downside would develop.
As the price is now in a downward trajectory we are going to see if the breakout to the downside occurs but since there are two significant support levels below the price interaction with the first one which serves as a median line from the current range is expected and is about only 1% lower from the current levels.
If the price starts moving below it the next one would be the support level from the ascending structure that we are seeing currently and would bring the price of Bitcoin down to around $5115 and if the support hold and the price starts increasing again a breakout to the upside would look more likely.
As this correctional structure from 3rd of April is considered the 4th wave of a higher degree impulse another increase with a higher high is expected above the $5500 area but before the increase, we might see more downside movement if the correction hasn’t ended.
From yesterday’s low at $166.44 the price of Ethereum has increased by 4.72% today as it came up to $174.29 at its highest point.
On the hourly chart, you can see that the price of Ethereum has come up to the significant horizontal resistance level which served as support for the upper range and was broken with strong momentum which both indicates significance.
Now that the five-wave move to the upside ended as an interaction with the significant resistance a downside move is expected which could either be a minor retracement if the five-wave move was the beginning of a higher degree impulse.
The other possibility is that we are seeing the continuation of the correction from 3rd of April in which case this upside movement seen from Monday could be the part of the same correctional structure an would result in another lower low compared to the one at around $158 which is currently being labeled as a Y wave of a Minute count.
If the price finds support on a higher low then the one at $158 and stars increasing again we would, in that case, most likely be seeing the start of the 5th impulse wave of a higher degree to the upside. But if the price continues moving below the mentioned level we would be more likely seeing the continuation of the correctional structure from 3rd of April which is considered to be the 4th wave out of the higher degree five-wave impulse.
From yesterday’s open at $81.894 the price of Litecoin hasn’t changed much as its currently being traded at around $81.
On the hourly chart, you can see that the price of Litecoin has been moving sideways from the 12th of April when a decrease with strong momentum has been made. As the price previously ended its impulsive move to the upside, a correction started developing out of which we have seen three waves. This means that I could have ended with the current structure being a consolidative range before finally, the next move to the upside would start.
As you can see the current structure is an expanding one with higher highs and lower lows but since Monday when an interaction has been made with the support level, the price has been in an upward trajectory but still hasn’t come above the prior high level before encountering significant resistance.
This is why we are soon to see if the structure would be a continuation of the correction which started on 3rd of April as now we are most likely going to see a move to the downside which could lead the price for a breakout to the downside. But if the price finds support above the prior low at $76.65 horizontal support level and starts increasing again a breakout to the upside would be expected.
From yesterday’s open at $5.5613 the price of EOS has fallen by 2.67% on yesterday’s low but since then started increasing again and has managed to pull back up to the levels from which the decrease was made and is currently sitting around $5.515.
On the hourly chart, you can see a similar chart pattern like the one on the Litecoin’s chart in a sense that a three-wave correction took place before the current structure which is in the case of EOS an ascending one. As prior to the formation of the current ascending structure a strong move to the downside was made in which the price of EOS decreased by over 14% the ascending structure could be the part of the same correction and has served as a retest of the broken support at around $5.58 which got retested today again.
The retest ended as another third rejection which could be the final one before we see a breakout to the downside and a continuation of the mentioned three-wave correction, but it could also be some consolidative price action before the 5th wave impulse to the upside starts. This is why the significant pivot point would be at the mentioned horizontal resistance level at around $5.58 and if the price manages to come above it the bullish scenario would be in play.
If the price starts decreasing now after another encounter with the horizontal resistance and goes below the currently seen ascending support line a bearish scenario would be in play as we are in that case most likely seeing the continuation of the correctional structure that started on 3rd of April.
The prices of the major cryptocurrencies that we have covered in today’s analysis are showing the end of the minor upward movement which started on Monday which is why now we are going to see a move to the downside.
From the depth and the momentum of the expected downside move we are to evaluate the validity of the projected scenarios but as the prices are showing that the three-wave correction has ended after which ascending structures started developing, the bullish scenario in which we are seeing the start of the next impulse to the upside looks more likely.
This weeks forecasting:
- Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) (April 15th)
- Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Ripple (XRP) (April 16th)
- Bitcoin (BTC), ETH/USD, XRP/USD and BCH/USD (April 17th)
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Disclaimer: Market analysis is for entertainment purposes only. It is not intended to be investment advice. All forms of trading are risky. Consult with a professional before trading cryptocurrencies.