BTCUSD and XRPUSD Technical Analysis – 07th JUNE 2022

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BTCUSD: Bearish Doji Star Pattern Below $31,750

Bitcoin was not able to sustain its bullish momentum this week and after touching a high of 31,730 on 06th June, started to decline against the US dollar.

Bitcoin entered into a bearish trend channel below the $31,750 handle and continues to decline touching a low of 29,217 in the European trading session today.

We can see a weak demand for bitcoin in the medium-term range, and the prices are expected to fall further towards the $25,000 level.

We can clearly see a bearish doji star pattern below the $31,750 handle which is a bearish reversal pattern because it signifies the end of an uptrend and a shift towards a downtrend.

Both the Stoch and Williams percent range are indicating an overbought level which means that in the immediate short term a decline in the prices is expected.

The relative strength index is at 29 indicating a WEAK demand for Bitcoin at the current market levels.

Bitcoin is now moving below its 100 hourly and 200 hourly simple MAs.

All of the major technical Indicators are giving a STRONG SELL signal, which means that in the immediate short term we are expecting targets of 28,000 and 27,500.

The average true range is indicating LESS market volatility with a strong bearish momentum.

  • Bitcoin: bearish reversal seen below $31,750
  • The StochRSI is indicating an OVERSOLD level
  • The price is now trading just below its pivot level of $29,643
  • All of the moving averages are giving a STRONG SELL market signal

Bitcoin: Bearish Reversal Seen Below $31,750

Bitcoin continues to move into a consolidation channel above the $29,500 handle in the European trading session today.

We can see the formation of a falling trend channel below the $30,000 handle and now we are looking at the projected levels of $28,000 and $25,000.

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

Bitcoin continues to consolidate above its important support level of $29,000 and further decline in its price is expected in the US trading session.

The price of BTCUSD is now facing its classic support level of 29,361 and Fibonacci support level of 29,571 after which the path towards 28,000 will get cleared.

In the last 24hrs, BTCUSD has declined by 5.64% with a price change of 17,71$ and has a 24hr trading volume of USD 35.441 billion. We can see an Increase of 31.14 % in the trading volume as compared to yesterday, which is due to selling by the medium-term investors.

The Week Ahead

The price of bitcoin is moving in a strongly bearish momentum, and the immediate targets are $28,000 and $27,500.

The daily RSI is printing at 44 which means that the medium-range demand continues to be NEUTRAL.

The price of bitcoin is moving in an uncertain range-bound movement between the $28,000 and $32,000 over the past few weeks. We will have to wait till a clear trend is visible in the medium-term range.

The prices of BTCUSD will need to remain above the important support level of $29,000 this week.

The weekly outlook is projected at $29,500 with a consolidation zone of $28,000.

Technical Indicators:

Moving averages convergence divergence (12,26): at -344 indicating a SELL

The ultimate oscillator: at 44.88 indicating a SELL

The rate of price change: at -5.92 indicating a SELL

The commodity channel index (14 days): at -52.34 indicating a SELL

XRPUSD – Double Top Pattern Below 0.4090

Ripple was unable to sustain its bullish momentum last week and after touching a high of 0.4089 on 06th June started to decline against the US dollar.

We can see that the price of Ripple continues to remain under pressure, now trading below the 0.4000 handle in the European trading session today.

We can clearly see a double top pattern below the 0.4090 handle which signifies the end of an uptrend and a shift towards a downtrend.

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

The relative strength index is at 38 which signifies a WEAK demand for Ripple at the current market prices and the continuation of the downtrend this week.

All of the moving averages are giving a STRONG SELL signal at the current market level of 0.3903.

Ripple is now trading below its pivot level of 0.3906 and facing its classic support level of 0.3855 and Fibonacci support level of 0.3894 after which the path towards 0.3500 will get cleared.

ALL of the major technical indicators are giving a STRONG SELL signal.

  • A bearish reversal is seen below 0.4090
  • The average directional change is indicating a NEUTRAL level
  • The average true range indicates LESSER market volatility
  • The daily RSI is below 50 at 38 indicating a BEARISH trend

Ripple: Bearish Reversal Seen Below 0.4090

We can see that the price of Ripple has entered into a consolidation channel above the 0.3850 handle in the European trading session today.

We can see that the price is struggling to retain the bullish bias against the US dollar. If the selling pressure continues, the immediate support level will be broken leading to the 0.3500 handle.

We can see that XRP touched a low of 0.3848 in the Asian trading session and an intraday high of 0.4035 in the European trading session today.

The price of XRPUSD has declined by 3.99% with a price change of $0.01623 in the past 24hrs and has a trading volume of 1.366 billion USD.

We can see an increase of 31.63% in the trading volume of Ripple as compared to yesterday, which is due to selling by the medium-term investors.

This Week Ahead

The price of XRPUSD is now moving into a consolidation channel above the 0.3800 handle and the next visible targets are 0.3750 and 0.3500.

We can see that the support channel has been broken in the 15 minutes time frame, and now more downsides are visible next week. Next week, Ripple is expected to enter into a fresh wave of selling below the 0.3800 handle.

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

Technical Indicators:

The StochRSI (14 days): at 41.19 indicating a SELL

The Williams percent range: at -70.56 indicating a SELL

Bull/Bear power (13 days): at -0.005 indicating a SELL

The commodity channel index: at -54.10 indicating a SELL

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