BTCUSD and XRPUSD Technical Analysis – 16th AUG 2022

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BTCUSD: Bearish Engulfing Pattern Below $25196

Bitcoin was unable to sustain its bullish momentum and after touching a high of 25196 on 15th Aug started to decline against the US dollar, coming below the $24000 handle today in the Asian trading session.

We can see that bitcoin failed to clear its resistance zone located at $25500 for the third time this month.

After touching a high of $25196, we can see some downward correction in the price towards the $23776 level.

We can clearly see a bearish engulfing pattern below the $25196 handle which is a bearish reversal pattern because it signifies the end of an uptrend and a shift towards a downtrend.

Bitcoin touched an intraday high of 24250 in the Asian trading session and an intraday low of 23787 in the Asian trading session today.

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 43 indicating a weak demand for bitcoin at the current market level and the continuation of the selling pressure in the markets.

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

Some of the major technical indicators are giving a sell signal, which means that in the immediate short term, we are expecting targets of 23500 and 23000.

The average true range is indicating less market volatility with a mildly bearish momentum.

  • Bitcoin: bearish reversal seen below $25196
  • High/Lows is Indicating Neutral Levels
  • The price is now trading just above its pivot level of $24017
  • Most of the moving averages are giving a strong sell market signal

Bitcoin: Bearish Reversal seen Below $25196

The price of Bitcoin dipped to a low of 23828 after which we can see some buying support and a move towards the consolidation phase in the markets.

The BTCUSD is attempting a downside break due to the formation of a contraction triangle below the 24804 level.

We can see the formation of the Ichimoku bearish crossover pattern in the 4-hour time-frame indicating the underlying bearish nature of the markets.

The immediate short-term outlook for bitcoin is bearish; 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 $23000, and the prices continue to remain above these levels for any potential bullish reversal in the markets.

The price of BTCUSD is now facing its classic support level of 23873 and Fibonacci support level of 23982 after which the path towards 23000 will get cleared.

In the last 24hrs, BTCUSD has increased by 0.22% by 53$, and has a 24hr trading volume of USD 29.478 billion. We can see a 2.30% decrease 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 $24000 level. The on-chain analysis also suggests that the markets are having more bearish tendencies and as such a drop in the levels is expected.

The daily RSI is printing at 58 which indicates a strong demand from the long-term investors.

The trendline formation is seen from the $25196 level towards the $23069, and we are now looking for the continuation of this trend in the hourly time frame.

The price of BTCUSD will need to remain above the important support level of $23000 this week.

The weekly outlook is projected at $24000 with a consolidation zone of $23500.

Technical Indicators:

The rate of price change: at -1.38 indicating a SELL

The ultimate oscillator: at 48.61 indicating a SELL

The relative strength index (14): at 49.35 indicating a NEUTRAL

The commodity channel index(14days): at -110.88 indicating a SELL

XRPUSD: Bearish Doji Star Pattern Below 0.3920

Ripple was unable to sustain its bullish momentum and after touching a high of 0.3920 on 15th Aug started to decline against the US dollar.

We can see a range-bound decline in the price of Ripple due to increased selling by the short-term investors.

Now we are testing the important support zone located at 0.3600 which if broken will lead to Ripple touching the level of 0.3500.

We can clearly see a bearish doji star pattern below the 0.3920 handle which is a bearish reversal pattern because it signifies the end of an uptrend and a shift towards a downtrend.

Ripple touched an intraday high of 0.3770 in the European trading session and an intraday low of 0.3665 in the Asian trading session today.

Both the average directional change and STOCHRSI are indicating neutral levels which means that in the immediate short term, a range-bound movement in the price is expected.

The relative strength index is at 50 which signifies a neutral demand for Ripple at the current market price and the continuation of the consolidation phase in the markets.

Some of the moving averages are giving a buy signal at the current market level of 0.3766.

Ripple is now trading just above its pivot level of 0.3717 and facing its classic support level of 0.3553 and Fibonacci support level of 0.3676, after which the path towards 0.3500 will get cleared.

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

  • Ripple: bearish reversal seen below the 0.3920 level
  • High/Lows indicating a neutral level
  • The average true range indicates high volatility
  • Ripple gains bearish bias against the US dollar

Ripple: Bearish Reversal Seen Below 0.3920

We can see that the prices of Ripple continue to move in a narrow range between the 0.3600 and 0.3800 levels in the European trading session today.

We can see the formation of the adaptive moving average AMA50 and AMA100 bearish crossover pattern in the weekly time frame, indicating the underlying bearish nature of the markets.

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

We can see that Ripple was unable to clear its resistance zone located at 0.4000 for the second time this month, and now the price is struggling to retain the bullish bias against the US dollar.

We have also detected the formation of MA20 simple crossover pattern located at 0.3774 which indicates that we may see a short-term downwards correction in the prices after touching these levels.

The price of XRPUSD has increased by 1.75% with a price change of $0.006492 in the past 24hrs and has a trading volume of 0.931 Billion USD.

We can see a decrease of 9.58% in the trading volume of Ripple as compared to yesterday, which appears to be normal.

This Week Ahead

Ripple has entered into a consolidation zone above the 0.3700 handle and the prices are expected to remain in the range-bound movement this week oscillating between the 0.3600 and 0.3800 levels.

The price of XRPUSD is expected to decline further touching the 0.3500 handle after which a recovery is expected in the markets.

We can see the formation of a bearish trendline from 0.3900 with a continuous projection towards 0.3605.

The weekly outlook for Ripple is projected at 0.3750 with a consolidation zone of 0.3600.

Technical Indicators:

The relative strength index (14): at 50 indicating a NEUTRAL

The STOCH (9,6): at 26.91 indicating a SELL

The commodity channel index (14): at -54.71 indicating a SELL

The rate of price change: at -0.79 indicating a SELL




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