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Bitcoin BTC/USD
From Friday when the price of Bitcoin was $3651 at its lowest point we have seen an increase of 6.89% measured to the current level of around $3900.
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The price of Bitcoin broke out yesterday from the descending channel in which it was correcting since the first increase was made on Fridays 8th so we have seen a week of sideways movement which ended on Sunday.
As the price is currently interacting with the bold black line which is the most significant resistance point to the upside we are going to see if the momentum behind the increase is stronger then the now encountered resistance.
The momentum is in fact, strong but since the bold black line was pierced an interaction with the 0.618 could be expected at least before we see some correctional movements. The current increase is the continuation of the impulsive move that started on Friday 8th and is likely going to ends as a 5-wave impulse, out of which the current increase would be the third wave.
Considering the vicinity of the bold black line and the 0.618 Fibonacci level we could very likely see the 4th wave start to develop now around those resistance lines as its start could get triggered by that resistance.
Bullish momentum looks strong but this is considered still to be only a correction after a downfall from $6500 so I wouldn’t expect it to go for much longer.
We could see the price increase up to $4230 area but certainly not in a straight line so we will closely monitor and see what happens at these levels.
Ethereum ETH/USD
From Friday’s low at $122.47 the price of Ethereum has increased by just over 20% as its currently being traded at $147.77.
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On the 15-min chart, you can see that a breakout to the upside occurred like expected which is why my primary count got validated as the ascending channel was a minor consolidation before the further increase.
What we are seeing is now definitely a continuation of the increase made until 24th of December which is why we are seeing an impulsive increase from the start of the day in the cryptocurrency market.
The price is currently interacting with the descending trendline which isn’t that significant like in the case of Bitcoin but still serves as resistance point which is why we are seeing the price having a tough time going beyond it and is most likely heading for a retracement now.
Considering that this was the third move and that we are most likely seeing the Intermediate Y wave which would develop as the 5-wave impulse the expected retracement potentially now triggered by the interaction with the descending trendline resistance point, would be the 4th wave. This means that another increase would be expected but that could only mean that the price of Ethereum is headed significantly higher.
From the depth of that retracement we are going to see if our expectations hold some truth but if that happens I wouldn’t be surprised if the price goes up to only to the 0.786 Fibonacci level which is slightly higher than the previous high.
Ripple's XRP/USD
Unlike in the case of previously discussed cryptos, the price of Ripple wasn’t at its lowest on Friday. Instead, the price of Ripple came down to its lowest yesterday, when it spiked down to $0.3018.
This spike might have served as a trigger of buy orders as the price immediately started increasing following the market in general and came up to $0.325 today which is an increase of 7.6%.
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Looking at the 15-min chart you can see that today’s high was the interaction with the $0.236 Fibonacci level which serves as resistance. The price has broken out from its descending range as well and is currently in the upward trajectory but as like in the case of other cryptos we are likely going to see a minor pullback as the first significant resistance was encountered.
The price is on at the vicinity of the ending point of the first impulse wave to the upside which also serves as resistance so if the price is to continued moving upward strong momentum is needed, and considering that the price of Ripple has started another impulsive move the momentum is definitely there its just a question of are the sellers going to be stronger at the moment.
This increase was expected and is a continuation of the first Intermediate W wave that lasted until 24th of December so after it ends I would be expecting more downside or at least more sideways movement but in the meantime we are going to look out for the potential ending point of the increase.
If this is the mentioned continuation we could expect to see the price of Ripple to $0.418 even.
Bitcoin Cash BCH/USD
From yesterday’s low at $119.2 the price of Bitcoin Cash has increased by 11.68% and is currently sitting at around $133.3 area.
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Looking at the 15-min chart you can see that a breakout occurred from the descending triangle and the price has come to my projected target area for the 5th Minute wave which was on the horizontal resistance line above at around $135.
Since a breakout occurred from the descending channel as well as the descending triangle we can say that the buyers have shown strength, but we could see that momentum extinguished for now as the price encountered another significant resistance point like in the case of other cryptos.
Conclusion
Now we are likely going to see a retracement which would be the second wave from a higher degree impulse and would serve as a retest of the broken descending structures before the prices are to continue moving higher to the upside.
How further the increase would last it is still unclear but either it has ended on today’s interaction with the significant resistance point which would be very unlikely considering the momentum shown, or we are to see more continuation in which case the upside potential would be to around 10% move from the current levels.
Current Crypto Market Overview:
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Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.