Dmitriy Gurkovskiy | Oct 02, 2020 11:41
As we can see in the daily chart, BTC/USD is still testing 23.6% fibo after a divergence and the first descending wave. The pair tried to rebound from this level and start a new rising wave to reach the high at 12479.50 but failed. The key resistance now is at 76.0% fibo (11467.00). The next descending wave may be heading towards 38.2% and 50.0% fibo at 9212.00 and 8195.00 respectively.
The H4 chart shows the correction to the upside. After almost reaching 61.8% fibo at 11210.00 and then falling towards the low at 9824.00, the pair failed to test the later level but the next ascending structure also failed to update the high. As a result, the next descending impulse is expected to break the low and continue moving to the downside.
As we can see in the H4 chart, Ethereum is moving rather similar to Bitcoin. The divergence made the pair complete the uptrend and start a new decline, which has reached 38.2% fibo. After testing this rea and breaking the low, the asset is expected to continue falling. The next downside targets may be 50.0% and 61.8% fibo at 289.20 and 242.05 respectively. The resistance is the high at 488.68.
In the H1 chart, the pair has almost reached 50.0% fibo at 341.40 after the local divergence. Later, the price may fall towards 61.8% and 76.0% fibo at 334.60 and 326.60 respectively, as well as the low at 312.81. The local resistance is the high at 370.00.
Written By: Dmitriy Gurkovskiy
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