BTCUSD and XRPUSD Technical Analysis – 31st JAN 2023

FXOpen

BTCUSD: Double Bottom Pattern Above $22396

Bitcoin continues its bullish momentum from last week and after touching a low of $22396 on 25th Jan, the prices started to correct upwards against the US dollar and are now ranging above the $22500 handle in the European trading session today.

We have seen a bullish opening of the markets this week.

We can clearly see a double bottom pattern above the $22396 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 22543 in the Asian trading session and an intraday high of 22992 in the European trading session today.

The price of bitcoin is ranging near a new record high of 1 month.

We can see the formation of a bullish harami and bullish harami cross pattern in the daily time frame.

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.

We have also detected a bullish doji star pattern in the 30-minute time frame indicating bullish trends.

The relative strength index is at 56.23 indicating a strong demand for bitcoin, and the continuation of the buying pressure in the markets.

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

Most of the major technical indicators are giving a buy signal, which means that in the immediate short term, we are expecting targets of 23000 and 24500.

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

  • Bitcoin: bullish continuation seen above $22396
  • The commodity channel index is indicating a neutral level
  • The price is now trading just below its pivot level of $22884
  • The short-term range is mildly bullish

Bitcoin: Bullish Continuation Seen Above $22396

The price of bitcoin witnessed a downwards correction after touching $23926 as the target of $24K was rejected by the bulls. Now the markets are ranging into a consolidation channel above the $22500 handle.

After the consolidation phase is over, we are expecting upside moves in the range of $23500 to $24000 levels.

The resistance of the channel is broken in the 15-minute time frame.

We can see the formation of a bullish trend reversal pattern with the moving average MA20 in the 15-minute time frame.

The immediate short-term outlook for bitcoin is mildly 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 $20780 at which the price crosses 9-day moving average stalls, and at $21091 which is a 38.2% retracement from a 4-week high.

The price of BTCUSD is now facing its classic resistance level of 22928 and Fibonacci resistance level of 22950 after which the path towards 23000 will get cleared.

In the last 24hrs BTCUSD has decreased by 1.85% by 432.62$ and has a 24hr trading volume of USD 25.925 billion. We can see a decrease of 5.10% in the trading volume compared to yesterday, which appears to be normal.

The Week Ahead

Bitcoin has reached its highest level this month at $23956 which is a positive sign after the harsh crypto winter season seen last year.

The daily RSI is printing at 69.281 which indicates a very strong demand for bitcoin and the continuation of the bullish phase present in the markets in the short-term range.

We can see the formation of a bullish trend line from $22396 towards the $23983 level.

The price of BTCUSD is now facing its resistance zone located at $23098 which is a pivot point, and at $23527 which is a 3-10 day MACD oscillator stalls.

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

XRPUSD: Hammer Pattern Above 0.3860

Ripple was unable to sustain its bearish momentum and after touching a low of 0.3860 on 30th Jan, the prices started to correct upwards against the US dollar crossing the $0.3900 handle today in the European trading session.

The momentum indicator is back over zero in the weekly time frame.

We can clearly see a hammer pattern above the 0.3860 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 0.3882 in the Asian trading session and an intraday high of 0.3999 in the European trading session today.

The horizontal resistance is broken in the daily time frame indicating bullish trends.

The relative strength index is at 66.21 which signifies a very strong demand for Ripple at the current market prices and the continuation of the bullish phase in the markets.

Most of the moving averages are giving a buy signal at the current market levels of 0.3999.

The STOCHRSI and Williams percent range are indicating an overbought level, which means that the prices are expected to decline in the short-term range.

Ripple is now trading just above its pivot level of 0.3974 and facing its classic resistance level of 0.3999 and Fibonacci resistance level of 0.4016 after which the path towards 0.4200 will get cleared.

Some of the major technical indicators are giving a strong buy signal.

  • Ripple: bullish reversal seen above the 0.3860 level
  • The RSI is indicating a buy signal
  • The average true range indicates HIGH volatility
  • Ripple gains bullish bias against the US dollar

Ripple: Bullish Reversal Seen Above 0.3860

We can see that Ripple has resumed its long-term upwards trend and is now crossing the $0.4000 handle after which the next visible targets are located at $0.4200 and $0.4500 levels.

The Ichimoku price is over the cloud in the 15-minute time frame indicating bullish trends.

We can see the formation of the moving average bullish crossover pattern with moving averages MA20 and MA50 in the 15-minute time frame.

We can see the formation of an inverted hammer in the 1-hour time frame which is a bullish signal.

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

The price of XRPUSD has decreased by 0.58% with a price change of $0.002333 in the past 24hrs and has a trading volume of 1.137 billion USD.

We can see an increase of 23.84% in the trading volumes of Ripple compared to yesterday, which appears to be normal.

This Week Ahead

The price of Ripple continues its long-term bullish trend and is now preparing for its next move above the $0.4000 level.

Ripple has started a major upside move from the swing low of $0.3860, and after crossing the $0.4000 levels will pave its way towards its long-term target of $0.5000 level.

There is a major bullish trend line formation with a support located at $0.3851 at which the price crosses 9-day moving average stalls.

We can see a continuous progression of a bullish trend line formation from $0.3860 towards the $0.4302 level.

The resistance zone is located at $0.4103 at which the price crosses the 9-day moving average $0.4126 which is a 50% retracement from a 13-week high/low.

The weekly outlook for Ripple is projected at $0.4400 with a consolidation zone of $0.4200.




FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

Bitcoin Price Hits a Month's High, Breaking Key Resistance April Became the Worst Month for BTC/USD Since November 2022 Bitcoin Price Bullish after Halving-2024 ADA Drops to Last Place in the Top 10 Cryptocurrencies BTC/USD Analysis: Bitcoin Price Rises Ahead of Halving

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: S&P500, US Dollar, Gold Price, PEP Stocks

Get he latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Read the latest news

Commodities

The Price of Silver Has Reached Its Highest Level in Over Three Years

As indicated by the XAG/USD chart today, the intraday price of silver reached $29.84 per ounce yesterday, while the previous yearly high on 12 April was $29.79. The last time this price was seen was in February

What Is the Wolfe Wave, and How Can You Trade It?
Trader’s Tools

What Is the Wolfe Wave, and How Can You Trade It?

The Wolfe Waves is a powerful chart pattern recognised for analysing potential price reversals. Named after Bill Wolfe, who developed this formation through extensive trading practice, Wolfe Waves provide traders with a structured approach to anticipate market movements. In this

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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.