BTCUSD and XRPUSD Technical Analysis – 26th JULY 2022

Share news

BTCUSD: Bearish Engulfing Pattern Below $24262

Bitcoin was unable to sustain its bullish momentum and after touching a high of 24195 on 20th July started to decline against the US dollar dropping below the $21500 handle in the European trading session today.

We can see that after this decline the prices have entered into a consolidation zone above the $21000 handle.

The drop in the prices of bitcoin comes just before the upcoming US Federal Reserve FOMC meeting, which is expected to raise the interest rates by 75 basis points.

We can clearly see a bearish engulfing pattern below the $24262 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 22248 in the Asian trading session and an intraday low of 20928 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 29 indicating a weaker 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 200 hourly simple moving averages.

Most of the major technical indicators are giving a strong sell signal, which means that in the immediate short term, we are expecting targets of 20500 and 20000.

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

  • Bitcoin: bearish reversal seen below $24262
  • STOCHRSI is indicating an overbought level
  • The price is now trading just above its pivot level of $21077
  • All of the moving averages are giving a strong sell market signal

Bitcoin: Bearish Reversal Seen Below $24262

The price of bitcoin continues to decline below the $22000 handle, and we are now testing the important support level of $20000 in the European trading session.

The global sentiments have changed in the wake of the US Fed interest rate decision and its impact on the cryptocurrency markets worldwide.

We can see the formation of a falling trend channel, and now we are facing the immediate targets of $20500 and $20100.

Bitcoin was unable to clear its resistance zone located at $25000, and we can see a progression of the bearish bias in the markets.

The ultimate oscillator is indicating a neutral market, and the prices can also stage an upwards correction from these levels if the bearish trend gets exhausted.

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 $20000, 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 20902, and Fibonacci resistance levels of 21034, after which the path towards 20000 will get cleared.

In the last 24hrs, BTCUSD has declined by 4.19% by 922 and has a 24hr trading volume of USD 37.899 billion. We can see an increase of 33.97% in the trading volume as compared to yesterday, which is due to the selling seen by the short-term investors.

The Week Ahead

The price of bitcoin is moving in a mildly bearish momentum, and the immediate targets are $20500 and $20000

The daily RSI is printing at 44 which means that the medium range demand continues to remain weak.

The trendline formation is seen from the $24000 level towards the $21000, indicating that if this bearish trend line gets exhausted, we may see an upwards correction in the prices.

Bitcoin prices may continue to remain in a range-bound movement between the $20000 and $22000 levels this week.

The price of BTCUSD will need to remain above the important support levels of $20000 this week.

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

Technical Indicators:

The average directional change (14 days): at 43.57 indicating a NEUTRAL

The rate of price change: at -3.78 indicating a SELL

The relative strength index (14): at 29.67 indicating a SELL

The commodity channel index (14 days): at -59.39 indicating a SELL

XRPUSD: Dark Cloud Cover Pattern Below 0.3815

Ripple was unable to sustain its bullish momentum, and after touching a high of 0.3815 on 20th July started to decline against the US dollar.

We can see a continuous decline in the prices of Ripple due to increased selling by the short-term investors.

Now we are testing the important support zone located at 0.3300 which, if broken, will lead to Ripple touching the levels of 0.3000.

We can clearly see a dark cloud cover pattern below the 0.3815 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 0.3440 in the Asian trading session and an intraday low of 0.3278 in the European trading session today.

The ultimate oscillator is indicating a neutral level which means that in the immediate short term, a consolidation in the prices is expected.

The relative strength index is at 34 which signifies a weaker demand for Ripple at the current market prices and the continuation of the decline.

Most of the moving averages are giving a strong sell signal at the current market level of 0.3310.

Ripple is now trading just above its pivot level of 0.3304 and facing its classic support level of 0.3239 and Fibonacci support level of 0.3287, after which the path towards 0.3100 will get cleared.

Most of the major technical Indicators are giving a strong sell signal.

  • Ripple: bearish reversal seen below the 0.3815 level
  • The ultimate oscillator is indicating a neutral level
  • The average true range indicates less market volatility
  • Ripple gains bearish bias against the US dollar

Ripple: Bearish Reversal Seen Below 0.3815

We can see that the price of Ripple continues to move downwards with the formation of a bearish trendline, now trading below the 0.3400 handle in the European trading session today.

The prices of Ripple are forming a bearish descending trendline below the 0.3800 levels and a continued progression is seen towards the 0.320 levels.

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, and now the price is struggling to retain the bullish bias against the US dollar.

We have also detected the formation of MA5 exponential crossover pattern located at 0.3318 which indicates that we may see a short-term upwards correction in the prices.

The price of XRPUSD has decreased by 4.53% with a price change of $0.01572 in the past 24hrs and has a trading volume of 1.139 Billion USD.

We can see a decrease of 3.42% in the trading volumes of Ripple as compared to yesterday, which appears to be normal.

This Week Ahead

Ripple is expected to move into a consolidation zone above the 0.3200 handle and remain in the range-bound movement this week below the 0.3500 levels.

The prices of XRPUSD are expected to decline further touching the 0.3100 handle after which a recovery is expected into the markets.

We can see the formation of a bearish harami pattern in the 15-minute time frame indicating the underlying bearish nature of the markets.

The weekly outlook for Ripple is projected at 0.3400 with a consolidation zone of 0.3200

Technical Indicators:

The relative strength index (14):  at 34 indicating a SELL

The commodity channel index: at -72.22 indicating a SELL

The rate of price change: at -3.21 indicating a SELL

The average directional change (14 days): at 37.34 indicating a SELL




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.