BTCUSD and XRPUSD Technical Analysis – 06th SEP 2022
BTCUSD: Triple Bottom Pattern Above $19574
Bitcoin was unable to sustain its bearish momentum and after touching a low of 19574 on 01st Sep, it has entered a consolidation channel above the $19000 handle today in the European Trading session.
The price of bitcoin continues to move in a narrow consolidation pattern suggesting that we have touched the bottom, and it is now ready for a bullish reversal trend.
Such a movement also suggests that we are in a phase before a bullish rally could be seen in the markets.
We have also seen a bullish opening gap underpinning the markets this week.
We can clearly see a triple bottom pattern above the $19574 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 19703 in the Asian trading session and an intraday high of 20161 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 58 indicating a STRONG demand for bitcoin at the current market levels and the continuation of the buying pressure in the markets.
Bitcoin is now moving above its 100 hourly simple moving average and below its 200 hourly exponential moving averages.
All of the major technical indicators are giving a STRONG BUY signal, which means that in the immediate short term, we are expecting targets of 20500 and 22000.
The average true range is indicating HIGH market volatility with a strong bullish momentum.
- Bitcoin: bullish reversal seen above $19574
- The STOCHRSI is indicating neutral levels
- The price is now trading just above its pivot level of $19933
- Most of the moving averages are giving a STRONG BUY market signal
Bitcoin: Bullish Reversal Seen Above $19574
The price of Bitcoin dipped to a low of 19574 after which we can see some buying support and a move towards the consolidation phase in the markets above the $19500 handle.
The adaptive moving average AMA20 is giving a bullish trend reversal signal in the 4-hour time frame.
We can see the formation of a bullish harami cross pattern in the 1-hour time frame indicating the underlying bullish nature of the markets.
We have also detected the formation of a bullish harami pattern in both the daily and 1-hour time frames indicating the bullish scenario.
The immediate short-term outlook for bitcoin is bullish, 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 $19000 and the prices continue to remain above these levels for the continuation of the bullish reversal in the markets.
The price of BTCUSD is now facing its classic resistance level of 19989 and Fibonacci resistance level of 20070 after which the path towards 21000 will get cleared.
In the last 24hrs, BTCUSD has increased by 1.03% by 202$ and has a 24hr trading volume of USD 33.957 billion. We can see an increase of 23.80% in the trading volume as compared to yesterday, which appears to be normal.The Week Ahead
The prices of Bitcoin are moving in a consolidation zone above the $19500 level. At present the bearish outlook has been invalidated with a continuous buying at levels above $19600.
The 10-Year bitcoin trendline is in place with the next targets spotted at levels above $28000.
We can see that the market is trying to build a momentum which can continue to hold up to the $25000 level in the medium term.
The daily RSI is printing at 38 which indicates a eeak demand from the long-term investors.
The prices of BTCUSD will need to remain above the important support levels of $19500 this week.
The weekly outlook is projected at $21500 with a consolidation zone of $20500.
The moving averages convergence divergence (12,26): is at 32.10 indicating a BUY
The ultimate oscillator: is at 54.23 indicating a BUY
The rate of price change: is at 1.018 indicating a BUY
The commodity channel index (14 days): is at 97.59 indicating a BUY
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