Bitcoin sideways, XRP taking a beating. Where are we going? What is going on? Let's look at the charts!
The Bitcoin -0.62% bear market ended on June 24 when BTC -0.62% hit a low of $5760. Since then Bitcoin -0.62% has presented us with a series of higher lows and lower highs in a very drawn out consolidation pattern. Much to the dismay of many analysts and traders alike who are used to the quick movement and plenty of volatility in the crypto-space. To further support this idea, recently, we have seen some altcoins and in particular, some low caps popping off. These are all indications of an impending bullish movement by the major coins, one of which, XRP, has already experienced such an action and looking at the weekly chart is not finished yet.
The consolidation range of the symmetrical triangle for Bitcoin -0.62% comes to a conclusion on October 26. I expect that by then Bitcoin -0.62% will have broken above the "Critical," $6850 mark and will have spurred the beginnings of the next bullish crypto cycle.
XRP has led the way as the first major sign of the resurgence of the Bitcoin -0.62% bull market. As noted in my BTC -0.62% analysis Bitcoin -0.62% is in a consolidation period after definitively ending the bear market on June 24. XRP is showing us that the bear market is, indeed, over and that the bullish mindset of the market is returning.
We turn to the pre-Swell XRP pump. Looking at XRP on the smaller timeframes actually led me to make several trading mistakes as I got ahead of myself and didn't think objectively but got tied up in the excitement.
The pre-Swell pump is just the Wave 1 of a new Elliott Wave pattern for XRP and features the sub-waves that EW traders look for. The retracement from the local high that XRP hit should have been expected by myself, but I looked at too small a scale. If we look at the weekly chart for XRP we can see that XRP remains in oversold territory with bullish moves by the Stoch ,RSI , and MACD . Also, looking at the retrace from the local high we see that $0.46 is the 38.2 Fib Retracement level. This is the likely point at which the XRP pullback will stop. From there we will target the 1.618 extension of Wave 1 presenting us with a target of $1.12 for Wave 3.