Bitcoin charts continue to look bearish. The most recent rally has failed at the 23 percent retracement of the major avalanche from $6,400 to $3,500. Frequently, when a market fails at a 23 percent retracement point, it is a sign of a weak or “dead cat” bounce.
A basic wave count on the Bitcoin chart seems to indicate a plunge to a new low at $3,000 before the next material bounce (Figure 1).
One thesis we have had is there is no safe place to hide from this bear market.
Ripple (XRP) may be the next cryptocurrency to lose half its value. Using a technical indicator called Fibonacci speed lines, research shows XRP is breaking below an important trend line (Figure 2). This is creating a very bearish signal. The move could take XRP from 38 cents to 16 cents by mid-December.
Bottom Line: These are heady days for Ripple now that it is the number two ranked market cap on coinmarketcap.com. Ripple’s market cap ($14 billion) makes very little sense with Ethereum at $11 billion. This makes Ripple ripe for a major drop.
Note: Fibonacci Speed Lines. Sound complicated right? Well, maybe not. The writer of this report learned about this indicator in the Crypto.IQ premium trading room. It’s a place where people can learn and profit together.