BTCUSD and XRPUSD Technical Analysis – 23rd AUG 2022
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BTCUSD: Double Bottom Pattern above $20,798
Bitcoin failed to sustain its downward momentum, and after touching a low of 20,794 on August 20, it has entered a consolidation channel above the $21,000 handle in the European trading session today.
We can see that Bitcoin failed to clear its resistance area at $25,500 for the fourth time this month.
After touching the high of $25195, we can see a downward price correction towards the $20798 level.
We clearly see a double bottom pattern above the $20,798 handle, which is a bullish reversal pattern as it marks the end of a downtrend and a move into an uptrend.
Bitcoin hit an intraday low of 20909 in Asian trading and an intraday high of 21510 in the European trading session today.
Both STOCH and STOCHRSI are showing overbought levels, which means that in the short term prices are expected to fall.
The relative strength index is 57, indicating strong demand for bitcoin at current market levels and continued buying pressure in the market.
Bitcoin is now trading above the 100-hour simple moving average and below the 200-hour simple moving average.
All the major technical indicators are giving a strong buy signal, which means that in the near term we expect targets of 22500 and 22000.
The average true range suggests lower market volatility and strong bullish momentum.
- Bitcoin: Bullish reversal seen above $20,798
- The Williams percentage shows an overbought level
- The price is now trading slightly below its pivot level of $21430
- Most moving averages give a BUY market signal
Bitcoin: Upward reversal above $20,798
Bitcoin price dropped to a low of 20909, after which we can see buying support and a move towards a consolidation phase in the market above the $21000 handle.
BTCUSD tries to rise when the moving average convergence divergence (MACD) has crossed the moving average on the 1-hour time frame.
The parabolic SAR indicator gives a bullish reversal signal with a 1-hour timeframe.
We can see that the aroon indicator is giving an uptrend signal on the 1-hour time frame, indicating the underlying bullish nature of the market.
The immediate short-term outlook for Bitcoin is bullish, the medium-term outlook has turned neutral, and the long-term outlook is neutral in the current market environment.
Bitcoin’s support zone is located at $20,000 and prices will continue to hold above these levels as the market’s bullish reversal continues.
BTCUSD price now meets its classic resistance at 21549 and Fibonacci resistance at 21642, after which the path towards 22000 is cleared.
In the last 24 hours, BTCUSD has gained 0.90% at $190 and its 24-hour trading volume is $32.135 billion. We can see a 27.24% increase in trading compared to yesterday, which seems normal.The week ahead
Bitcoin price is moving in a consolidation zone above the $21,000 level. The US Federal Reserve’s monetary policy and its impact on the strength of the US dollar continue to weigh on bitcoin prices as medium-term investors sell off.
The daily RSI is 38, indicating weak demand from long-term investors.
Some analysts are calling this continued fall in bitcoin prices the start of crypto winter.
The long-term trend line on hold shows that bitcoin’s next target is $28000 in the coming weeks, which is also confirmed by the super trend indicator.
BTCUSD price should remain above the important $20,000 support level this week.
The weekly outlook is $23,000 and the consolidation zone is $22,500.
Average change of direction (14): 32.84 which means BUY
Final Oscillator: at 52:16 which indicates BUY
Rate of price change: 1.52 which means BUY
Commodity channel index (14 days): 100.44 which means BUY
XRPUSD: Bullish Hammer Pattern Above 0.3313
Ripple was unable to sustain its downward momentum and after touching a low of 0.3320 on August 20, it has entered a consolidation channel above the 0.3300 handle.
We see a range in Ripple price from August 19th between 0.3300 and 0.3500 levels.
Now we are testing an important resistance zone located at 0.3500, which if broken will lead to Ripple touching the 0.3600 levels soon.
We clearly see a bullish hammer pattern above the 0.3313 handle, which is a bullish reversal pattern as it marks the end of a downtrend and a move towards an uptrend.
Ripple touched an intraday high of 0.3450 and an intraday low of 0.3326 in Asian trading today.
Both the Williams Percent Volatility and the STOCHRSI are showing neutral levels, which means that in the immediate short term, prices are expected to range.
The relative strength index is 50, which means a neutral demand for Ripple at current market prices and a continuation of the consolidation phase in the market.
Some moving averages give a buy signal at the current market level of 0.3409.
Ripple is now trading slightly above its pivot level of 0.3393 and faces its classic resistance at 0.3410 and the Fibonacci resistance level at 0.3422, after which the path towards 0.3500 clears.
Some of the most important technical indicators give a buy signal.
- Ripple: bullish reversal above the 0.3313 level
- High/lows indicate neutral levels
- Average True Range indicates LESS volatility
- Ripple gains bullish momentum against the US dollar
Ripple: Upward reversal seen above 0.3313
We see that Ripple price continues to move in a narrow range between 0.3300 and 0.3500 in European trading today.
We can see that the MACD has crossed above its moving average on both the 30-minute and 1-hour timeframes.
We have also observed the formation of a bullish harami pattern on the 4-hour time frame, indicating the underlying bullish nature of the market.
Ripple’s short-term outlook has risen, medium-term outlook is neutral and long-term outlook is neutral in the current market situation.
We see that Ripple failed to clear its resistance area at 0.4000 for the third time this month.
We have also observed the MA20 and MA50 rising price cross formation on the 2-hour time frame.
XRPUSD is up 1.75% with a price change of $0.005867 in the last 24 hours with a trading volume of $0.970 billion.
Ripple’s trading volume increased by 23.87% compared to yesterday, which seems normal.
The week ahead
Ripple has entered a consolidation zone above the 0.3300 handle and prices are expected to rise above the immediate resistance level of 0.3500 with the next visible targets at 0.3700 and 0.4000.
Balance sheet volume (OBV) is in balance, indicating the current neutral stance of the market.
Ripple price continues to recover well against the US dollar and now we can see the formation of a bullish trend line in place starting at 0.3330 towards the intraday level of 0.3450.
Ripple weekly outlook is 0.3600 and consolidation zone is 0.3500
Relative strength index (14): 50 indicating NEUTRAL
Bull/Bear Power (13): 0.0021 means BUY
Commodity channel index (14): 1.04 which means NEUTRAL
Rate of price change: 1.084 which means BUY
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