BTCUSD and XRPUSD Technical Analysis – 06th SEP 2022

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BTCUSD: Triple Bottom Pattern Above $19574

Bitcoin was unable to sustain its bearish momentum and after touching a low of 19574 on 01st Sep, it has entered a consolidation channel above the $19000 handle today in the European Trading session.

The price of bitcoin continues to move in a narrow consolidation pattern suggesting that we have touched the bottom, and it is now ready for a bullish reversal trend.

Such a movement also suggests that we are in a phase before a bullish rally could be seen in the markets.

We have also seen a bullish opening gap underpinning the markets this week.

We can clearly see a triple bottom pattern above the $19574 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

Bitcoin touched an intraday low of 19703 in the Asian trading session and an intraday high of 20161 in the European trading session today.

Both the STOCH and Williams percent range are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 58 indicating a STRONG demand for bitcoin at the current market levels and the continuation of the buying pressure in the markets.

Bitcoin is now moving above its 100 hourly simple moving average and below its 200 hourly exponential moving averages.

All of the major technical indicators are giving a STRONG BUY signal, which means that in the immediate short term, we are expecting targets of 20500 and 22000.

The average true range is indicating HIGH market volatility with a strong bullish momentum.

  • Bitcoin: bullish reversal seen above $19574
  • The STOCHRSI is indicating neutral levels
  • The price is now trading just above its pivot level of $19933
  • Most of the moving averages are giving a STRONG BUY market signal

Bitcoin: Bullish Reversal Seen Above $19574

The price of Bitcoin dipped to a low of 19574 after which we can see some buying support and a move towards the consolidation phase in the markets above the $19500 handle.

The adaptive moving average AMA20 is giving a bullish trend reversal signal in the 4-hour time frame.

We can see the formation of a bullish harami cross pattern in the 1-hour time frame indicating the underlying bullish nature of the markets.

We have also detected the formation of a bullish harami pattern in both the daily and 1-hour time frames indicating the bullish scenario.

The immediate short-term outlook for bitcoin is bullish, the medium-term outlook has turned neutral, and the long-term outlook remains neutral under present market conditions.

Bitcoin’s support zone is located at $19000 and the prices continue to remain above these levels for the continuation of the bullish reversal in the markets.

The price of BTCUSD is now facing its classic resistance level of 19989 and Fibonacci resistance level of 20070 after which the path towards 21000 will get cleared.

In the last 24hrs, BTCUSD has increased by 1.03% by 202$ and has a 24hr trading volume of USD 33.957 billion. We can see an increase of 23.80% in the trading volume as compared to yesterday, which appears to be normal.The Week Ahead

The prices of Bitcoin are moving in a consolidation zone above the $19500 level. At present the bearish outlook has been invalidated with a continuous buying at levels above $19600.

The 10-Year bitcoin trendline is in place with the next targets spotted at levels above $28000.

We can see that the market is trying to build a momentum which can continue to hold up to the $25000 level in the medium term.

The daily RSI is printing at 38 which indicates a eeak demand from the long-term investors.

The prices of BTCUSD will need to remain above the important support levels of $19500 this week.

The weekly outlook is projected at $21500 with a consolidation zone of $20500.

Technical Indicators:

The moving averages convergence divergence (12,26): is at 32.10 indicating a BUY

The ultimate oscillator: is at 54.23 indicating a BUY

The rate of price change: is at 1.018 indicating a BUY

The commodity channel index (14 days): is at 97.59 indicating a BUY

XRPUSD: Inverted Hammer Pattern Above 0.3200

Ripple was unable to sustain its bearish momentum and after touching a low of 0.3219 on 01st Sep, it has entered into a consolidation channel above the 0.3200 handle.

We can see that Ripple made a failed attempt to break its resistance level of 0.3500 by touching a high of 0.3429 today.

We can see that the moving averages convergence divergence (MACD) indicator is above 0 indicating a bullish scenario.

We can clearly see an inverted hammer pattern above the 0.3200 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

Ripple touched an intraday low of 0.3303 in the Asian trading session and an intraday high of 0.3429 in the European trading session today.

Both the HIGH/LOWS and the utimate oscillator are indicating neutral levels which means that in the immediate short term, a range-bound movement in the prices is expected.

The relative strength index is at 58 which signifies a neutral demand for Ripple at the current market prices and the continuation of the consolidation phase in the markets.

All of the moving averages are giving a BUY signal at the current market levels of 0.3361

Ripple is now trading just above its pivot level of 0.3341 and facing its classic resistance level of 0.3362 and Fibonacci resistance level of 0.3377 after which the path towards 0.3500 will get cleared.

Some of the major technical Indicators are giving a BUY signal.

  • Ripple: bullish reversal seen above the 0.3200 levels
  • The STOCHRSI is indicating an oversold level
  • The average true range indicates HIGH volatility
  • Ripple gains bullish bias against the US dollar

Ripple: Bullish Reversal Seen Above 0.3200

We can see that the price of Ripple continues to consolidate upwards with the formation of an ascending channel above the 0.3200 levels.

We can see that the MACD has crossed its moving average indicating a bullish outlook for Ripple in the 15-minute time frame.

The super trend indicator is giving a bullish reversal print in the 4-hour time frame.

The short-term outlook for Ripple has turned bullish, the medium-term outlook is neutral, and the long-term outlook is neutral under present market conditions.

The Williams percent range is over -50 indicating a bullish signal in the 30-minute time frame.

We have also detected the formation of a doji pattern in the 15-minute time frame indicating the present neutral stance of the markets.

The price of XRPUSD has increased by 3.82% with a price change of $0.01257 in the past 24hrs and has a trading volume of 1.027 billion USD.

We can see an increase of 67.39 % in the trading volume of Ripple as compared to yesterday, due to the buying seen at lower levels by the medium-term investors.

This Week Ahead

Ripple has entered into a consolidation zone above the 0.3200 handle and the prices are expected to surge above the immediate resistance level of 0.3500 with the next visible targets of 0.3700 and 0.4000.

The decline that we have seen in Ripple was due to the ongoing strength of the US dollar rather than the weakness in Ripple.

With continued consolidation above 0.3200, we can see that a bullish rally is expected into the markets towards the 0.4000 levels in the medium-term.

We can see a continuous progression of a bullish trendline formation from 0.3200 towards the 0.3650 levels.

The weekly outlook for Ripple is projected at 0.3700 with a consolidation zone of 0.3500.

Technical Indicators:

The relative strength index (14):  is at 58 indicating a BUY

The average directional change (14): is at 39.89 indicating a BUY

The commodity channel index (14): is at 66.02 indicating a BUY

The rate of price change: is at 1.287 indicating a BUY




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