BTCUSD and XRPUSD Technical Analysis – 27th SEP 2022

FXOpen

BTCUSD: Double Bottom Pattern Above $18566

Bitcoin was unable to sustain its bearish momentum and after touching a low of 18279 on 21st Sep, the price has continued to escalate upwards and crossed the $20000 handle today in the European trading session.

This upside break was long overdue and now marks the beginning of rebound towards the $25000 level.

We can see the formation of bullish engulfing lines in the 15-minute and weekly time frames.

The momentum indicator is back over zero indicating a bullish scenario in both the 30-minute and daily time frames.

We can clearly see a double bottom pattern above the $18566 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 19097 in the Asian trading session and an intraday high of 20310 in the European trading session today.

Both the STOCH and STOCHRSI 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 75 indicating an OVERBOUGHT market, and the possibility of some downwards correction due to profit taking by the medium-term investors.

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

Most of the major technical indicators are giving a STRONG BUY signal, which means that in the immediate short term, we are expecting targets of 22000 and 23500.

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

  • Bitcoin: bullish reversal seen above $18566.
  • The Williams percent range is indicating an overbought level.
  • The price is now trading just above its pivot level of $20179.
  • All of the moving averages are giving a STRONG BUY market signal.

Bitcoin: Bullish Reversal Seen Above $18566

The price of bitcoin continues to rise amid the buying pressure and improved investor sentiments. We are now looking at the important target levels of $22000 and $25000 in the medium-term ranges.

The adaptive moving averages AMA20 and AMA50 are both giving a bullish trend reversal signal in the 15-minute and daily timeframes.

We can see the formation of a bullish harami pattern in the 2-hour time frame.

We have also detected a bullish opening of the markets indicating the underlying bullish sentiment.

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

Bitcoin’s support zone is located at $19000, and the price continues 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 20253 and Fibonacci resistance level of 20298 after which the path towards 22000 will get cleared.

In the last 24hrs, BTCUSD has increased by 5.87% by 1120$ and has a 24hr trading volume of USD 48.845 billion. We can see an increase of 46.08% in the trading volume compared to yesterday, due to global buying pressure by the long-term investors.

The Week Ahead

The price of bitcoin is moving in a consolidation zone above the $20000 level. Further upsides are projected at $21000 and $22500 as the immediate targets.

The price of bitcoin reached its peak value of $69000 last year the month of November, and at the present level of $20000, we still need to recover ground towards the $40000 level, which if reached will mark a gain of 100% from the present market level.

The history of bitcoin price action shows that it is capable of doing so, and has done in the past.

The daily RSI is printing at 52 which indicates a neutral level and a move towards the consolidation phase in the markets.

The prices of BTCUSD will need to remain above the important support level of $19000 this week.

The weekly outlook is projected at $22000 with a consolidation zone of $21500.

Technical Indicators:

The moving averages convergence divergence (12,26): is at 323.90 indicating a BUY

The ultimate oscillator: is at 62.28 indicating a BUY

The rate of price change: is at 5.93 indicating a BUY

The average directional change (14): is at 51.06 indicating a BUY

XRPUSD: Morning Star Pattern Above 0.3826

Ripple was unable to sustain its bearish momentum and after touching a low of 0.3744 on 20th Sep, the price started an upwards correction crossing the 0.5500 handle on 23rd Sep.

After touching a high of 0.5519, we can see some downwards pressure in Ripple which is a short-term correction, after which a fresh upside wave is expected into the markets staging a recovery towards 0.6000 levels.

We can see that the commodity channel index is giving a bullish divergence in the 15-minute time frame.

We can clearly see a morning star pattern above the 0.3826 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 0.4648 in the Asian trading session and an intraday high of 0.4858 in the European trading session today.

We can see that Ripple is poised to break above its connecting trendline which is aiming towards 0.6986 levels.

The relative strength index is at 65 which signifies a strong demand for Ripple at the current market prices 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 0.4742.

Ripple is now trading just below its pivot level of 0.4758 and is facing its classic resistance level of 0.4936 and Fibonacci resistance level of 0.5192 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 0.3826 levels
  • Consolidation pattern is seen above 0.4600 level
  • The average true range indicates HIGH volatility
  • Ripple gains bullish bias against the US dollar

Ripple: Bullish Reversal Seen Above 0.3826

We can see that the price of Ripple continues to consolidate upwards with the formation of an ascending channel above the 0.4600 level.

We can see the formation of a bullish engulfing line in the 30-minute time frame indicating the bullish scenario.

Some of the technical indicators are giving a neutral stance of the markets which is now waiting for a fresh wave of upside correction.

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 adaptive moving average AMA20 is showing the bullish price crossover pattern in the weekly time frame.

The price of XRPUSD has increased by 1.16% with a price change of $0.005459 in the past 24hrs and has a trading volume of 2.568 billion USD.

We can see a decrease of 35.07% in the trading volumes of Ripple compared to yesterday, due to the continuation of the consolidation phase in the markets.

This Week Ahead

Ripple has entered a consolidation zone above the 0.4600 handle and the prices are expected to rise above the 0.4800 levels.

The price of Ripple continues to correct higher against the US dollar which indicates that we are now testing levels of 0.5000 in the medium-term range.

We can see a continuous progression of a Bullish trendline formation from 0.3800 towards the 0.6900 levels.

The weekly outlook for Ripple is projected at 0.5500 with a consolidation zone of 0.5000

Technical Indicators:

The relative strength index (14):  is at 65.20 indicating a BUY

The average directional change (14): is at 36.44 indicating a BUY

The ultimate oscillator: is at 51.89 indicating a BUY

The rate of price change: is at 42.41 indicating a BUY




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