BTCUSD and XRPUSD Technical Analysis – 06th DEC 2022
BTCUSD: Inverted Hammer Pattern Above $16009
Bitcoin was unable to sustain its bearish momentum and after touching a low of 16009 on 28th Nov, the prices started to correct upwards against the US dollar crossing the $17000 handle on 06th Dec.
We have seen a continued escalation in the prices of bitcoin due to the increasing global demands and buying at lower levels.
The resistance of the channel is broken in the 15-minute time frame indicating bullish trends.
We can see a bullish trend reversal pattern with the adaptive moving averages, AMA5, in the 15-minute time frame, and AMA20 in the 30-minute time frame.
We can clearly see an inverted hammer pattern above the $16009 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 16924 and an intraday high of 17098 in the Asian 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 50 indicating a NEUTRAL demand for bitcoin, and the shift towards the consolidation channel in the markets.
Bitcoin is now moving below its 100 hourly simple moving average and 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 18000 and 18500.
The average true range is indicating LESS market volatility with a mildly bullish momentum.
- Bitcoin: bullish reversal seen above $16009
- The Williams percent range is indicating an overbought level
- The price is now trading just below its pivot level of $17093
- Some of the moving averages are giving a BUY market signal
Bitcoin: Bullish Reversal Seen Above $16009
We can now see that the price of bitcoin is moving in a mildly bullish momentum and we are expecting moves towards the consolidation phase before any upwards rebound this week.
The RSI indicator is back over 50 indicating a bullish scenario in the daily time frame.
The ichimoku – bullish crossover: tenkan & kijun pattern is seen in the daily time frame indicating bullish trends.
We can see the formation of an inverted hammer / white gravestone pattern in the weekly time frame.
The price of bitcoin has crossed the $17000 handle today ranging near to a three-week High.
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 $16716 at which the price crosses the 9-day moving average.
The price of BTCUSD is now facing its classic resistance level of 17300 and Fibonacci resistance level of 17627 after which the path towards 18000 will get cleared.
In the last 24hrs BTCUSD has decreased by 1.85% by 320$ and has a 24hr trading volume of USD 18.733 billion. We can see a decrease of 12.48% in the trading volume compared to yesterday, which appears to be normal.
The Week Ahead
The price of Bitcoin is expected to enter the super bullish zone above the $17000 handle. There is an ascending channel forming with current support at $16395 on the hourly chart of BTCUSD.
We are now preparing to enter the super bullish zone in bitcoin and the prices are expected to gain 100% from the current market levels of $17000 towards $34000 in the starting of next year.
We can see a continuous progression of a bullish trend line formation from $16009 towards the $17169 levels.
The daily RSI is printing at 47 which indicates a NEUTRAL demand for bitcoin and the possibility of a shift towards the consolidation/correction phase for a short term in the markets.
The price of BTCUSD is now facing its resistance zone at $17810 at which the price crosses 18-day moving average stalls.
The weekly outlook is projected at $18500 with a consolidation zone of $18000.
The average directional index, ADX (14): is at 27.55 indicating a BUY
The commodity channel index, CCI (14): is at 84.15 indicating a BUY
The rate of price change, ROC: is at 4.84 indicating a BUY
Bull/bear power (13): is at 410.57 indicating a BUY
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