Bitcoin, Ethereum, and Litecoin Analysis: Prices Starting to Recover After A Correction
Bitcoin (BTC) Forecasting
1 BTC/USD =$47,049.4089 change ~ -1.47%
The price of Bitcoin continued decreasing last week and came down to $9162 at its lowest point on Wednesday. Since the price came down to those levels we have seen a recovery to the upside starting to play out with the price initially retesting the 0 Fib level for resistance after which strong bullish momentum was caught for breakage of the FIb level. As the next Fib level at $0.236 was retested on Thursday, the price made a minor retracement below it on the next day but continued increasing over the weekend managing to move slightly above it, reaching $10986 at its highest point on Saturday which was an increase of 20.13% measured from the weekly low at $9162.
Currently, the price is being traded at $10560 as it fell below the 0.236 level and is consolidating in a sideways range. On the hourly chart below you can see that the price of Bitcoin ended its three-wave correction of a higher degree with the Y wave's ending point being a lower low compared to the ending point of the W wave. The Y wave ended on the projected level which makes the likelihood of the WXY correction ending more probable.
The recovery we've seen after has been showing impulsiveness with the price managing to increase by 14% last Wednesday in one hour. This recovery is likely to end as a five-wave structure as it could either be the start of the next uptrend impulse wave or yet another corrective upside move if the WXY correction is to get prolonged by two more waves. As we are most likely seeing another increase after this minor retracement for the 5th wave to develop, interaction with the 0.386 Fibonacci level would be expected which would bring the price of Bitcoin to $11308.
From the first lower degree correction after the currently seen five-wave move ends we are to reevaluate the possibility of both outline scenarios.
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Ethereum (ETH) Forecasting
1 ETH/USD =$1,490.3867 change ~ -2.25%
From last week’s low on Wednesday at $195.15 the price of Ethereum has increased by 19.48% measured to the highest point to the price has been over the weekend which is at $235.17.
On the hourly chart, you can see that the price interacted with the 0.382 Fibonacci level where it found resistance and started moving to the downside again and is currently being traded below it and the interrupted ascending level which is a significant pivot point.
The price is being traded at $222 and managed to stay above the prior lows level after the interaction with the significant resistance point was made. We are seeing the price moving sideways after it broke out from the ascending triangle in which it was recovering since the last week’s low which means that the first wave of the recovery ended.
As the ascending structure got broken a pullback to the 0.5 Fib level could be seen for an establishment of support before the recovery could continue moving with even stronger momentum needed to breakout the interacted resistance point between the 0.382 and the ascending trendline.
There could be a possibility that the ascending triangle seen from last week’s low is the 4th wave ouf of the five-wave move to the downside instead of the now labeled ABC correction in which case the price would be set to go below $195 and potentially to the 0.618 Fib level at $182.8 but we still need to see signs of a confirmation for both scenarios.
If the momentum to the upside which is anticipated after the current sideways range completion is strong it would lead the price above the significant resistance point. In that case, further upside movement would look likely as it could mean that the next five-wave impulse to the upside started with the ascending triangle being its first sub-wave.
But if the price gets rejected on the next attempt by the resistance point further downside would look more likely below $195.
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Litecoin (LTC) Forecasting
1 LTC/USD =$175.2241 change ~ -2.12%
Last week on Tuesday the price of Litecoin came down to around $78 at its lowest point but on the next day started moving to the upside with strong momentum pushing the price back above the significant horizontal support level which was broken on the way down. Since then we have seen the price continued its increase until Saturday when it came to $104.7 at its highest point.
Now the price is traded at $95.9 as its started moving to the downside again but is still above the level of the previous minor retracement.
Looking at the hourly chart, you can see that the price started to move below the minor lower ascending level but found support on the horizontal support level of the prior low. As the price made a five-wave recovery to the upside and started moving sideways we could be seeing the development of the 2nd wave out of the higher degree impulse or another correctional upside move.
The WXYXZ correction ended last week on Tuesday which is why the recovery seen could lead the price of Litecoin above $100 again, potentially for interaction with the other significant horizontal level above at $120. If we are seeing the development of the five-wave move out of which the finished one of a lower degree would be its first wave the price could even go for a retest of the $137 level which is the upper resistance level of the zone in which the price of Litecoin has been until a breakout below its lower level at $109.356 occurred on the 10th of July.
The price is below the zone and we could see a retest of its lower level at $109.356 before another downturn if the five-wave increase was corrective but as the $85-83 area served as a support I don't believe that the price is headed below it on the next retracement.
More likely we are to see further recovery development after the current sideways range ends, which could be interpreted as consolidative zone after the initial increase.
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The cryptocurrency market has started recovering after completion of its corrective stage last week. The recovery seen is likely to continue but its still unclear whether or not we are going to see uptrend continuation.