BTCUSD and XRPUSD Technical Analysis – 10th MAY 2022

Share news

BTCUSD: Rounding Bottom Pattern Above $29,700

Bitcoin was not able to sustain its bullish momentum last week, and after touching a high of $40,000 on May 4th, started to decline heavily against the US dollar.

The short-selling continued pushing the price of BTC below the $30,000 handle, after which we can observe some consolidation.

We can see a pullback in the market at levels above $30,000, which is expected to continue towards $35,000.

We can clearly see a rounding bottom pattern above the $29,700 handle — which is a bullish reversal pattern signifying the end of a downtrend and a shift towards an uptrend.

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 44 indicating a WEAK demand for bitcoin at the current market level.

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

Some of the major technical indicators are giving a BUYsSignal, which means that in the immediate short term, we are expecting targets of $32,000 and $34,000.

The average true range is indicating LESSER market volatility with a mildly bullish momentum.

  • Bitcoin: bullish reversal seen above $29,700
  • The StochRSI is indicating an OVERBOUGHT level
  • The price is now trading just below its pivot level of $31,810
  • Some of the moving averages are giving a BUY market signal

Bitcoin: Bullish Reversal Seen Above $29,700

Bitcoin has moved out of the falling trend seen last week and now continues to consolidate its gains above the $30,000 handle in the European trading session. The bounce that we have seen above $30,000 is expected to continue this week, and we are now looking at targets of $32,000 and $35,000 in the medium-term range.

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

We are now looking at possible reversal and short selling at 32,946 and 34,350 as indicated by the MA50 and MA100 crossover patterns. This is further validated by an overbought level seen in the Stoch and Williams percent range.

The price of BTCUSD is now facing its classic resistance level of $32,009, Fibonacci resistance level of $32,240 after which the path towards $34,000 will get cleared.

In the last 24hrs, BTCUSD has declined by -5.59% with a price change of 1872$, and has a 24hr trading volume of USD 81.634 billion. We can see an increase of 111% in the trading volume as compared to yesterday, which is due to the heavy selling seen across global cryptocurrency markets.

The Week Ahead

The price of bitcoin touched an intraday low of $29,829 in the Asian trading session, and an intraday high of $32561 in today’s European trading session.

The daily RSI is printing at 30 which means that the medium range demand continues to be weak. This is also an opportunity for long-term investors to enter into the markets at lower levels.

The current market condition is suitable for entering into a BUY position with targets of $33,000 and $35,000 next week.

The price of BTCUSD will need to remain above the important support level of $30,000 this week.

The weekly outlook is projected at $33,000 with a consolidation zone of $32,500.

Bitcoin Down by 50%

The price of bitcoin touched an all-time high of $67,566 in November, 2021, and with the current market price of $31,570 marks a drop of 50% in its value.

The ongoing global economic crisis, rise in the interest rates, the Russia-Ukraine war and its effects on the global investor sentiments are driving bitcoin to historic lows, which has led to a decline in the total market capitalization of bitcoin to $600 billion USD.

Technical Indicators

The StochRSI (14-day): at 74.78 indicating a BUY

The average directional change(14-day): at 28.58 indicating a NEUTRAL level

The rate of price change: at 1.349 indicating a BUY

The moving averages 20: indicating a BUY

XRPUSD: Double Bottom Pattern Above 0.4700

Ripple was unable to sustain its bullish momentum last week, and after touching a high of 0.6538 on May 5th started to decline, touching a low of 0.4727 today in the European trading session.

We can see the formation of a demand zone in Ripple above 0.4700, which is expected to push its prices above 0.5000.

We can also clearly see a double bottom pattern above the 0.4700 handle which signifies the end of a downtrend and a shift towards an uptrend.

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

The relative strength index is at 47 which signifies a NEUTRAL demand for Ripple at the current market prices, and a shift towards a consolidation phase.

Some of the MAs are giving a BUY signal at the current market level of 0.5160.

Ripple is now trading below its pivot level of 0.5183, and is now facing its classic resistance level of 0.5213 and Fibonacci resistance level of 0.5268, after which the path towards 0.5500 will get cleared.

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

  • Ripple: bullish reversal seen above the level of 0.4700
  • The StochRSI is indicating an OVERBOUGHT level
  • The average true range indicates LESSER market volatility
  • The relative strength index is indicating a NEUTRAL level

Ripple: Bullish Reversal seen Above 0.4700

After declining below 0.5000, Ripple is now moving into a consolidation channel above the 0.5100 level in the European trading session today.

We can see an MA10 crossover pattern located at 0.5126 which further validates the bullish scenario for Ripple. We can see an increase in buying pressure above these levels, and the potential targets are $0.5500 and $0.6500.

We can see that XRP touched a low of 0.4727 in the Asian trading session, and an intraday high of 0.5325 in the European trading session today.

The price of XRPUSD has declined by -4.52% with a price change of -$0.0246 in the past 24hrs, and has a trading volume of 44.500 billion USD.

We can see an increase of 156% in the trading volumes of Ripple as compared to yesterday, which is due to the heavy selling seen across the global cryptocurrency markets.

The Week Ahead

The price of XRPUSD is now moving into a consolidation channel above the 0.5100 handle, and the next visible targets are 0.5300 and 0.5500.

Ripple is now trading in a rising demand zone formation, and we are looking at the possible targets of 0.5500 and 0.6500 for next week.

Next week, Ripple is expected to enter a consolidation channel above the 0.5500 handle.

The weekly outlook for Ripple is projected at 0.5600 with a consolidation zone of 0.5400.

Technical Indicators:

The Stoch (9,6):  at 69.48 indicating a BUY

The Williams percent range: at -30.58 indicating a BUY

The commodity channel index (14-day): at 61.67 indicating a BUY

The rate of price change: at 2.764 indicating a BUY




FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — at your service. Open your trading account now or learn more about making your money go further with FXOpen.

*Cryptocurrency CFDs are not available to Retail clients in the UK

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. FXOpen UK: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
FXOpen EU: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.