BTCUSD and XRPUSD Technical Analysis – 09th AUG 2022
BTCUSD: Bullish Engulfing Pattern Above $22425
Bitcoin was unable to sustain its bearish momentum and after touching a low of 22431 on 04th Aug started to correct upwards against the US dollar crossing the $24000 handle on 08th Aug.
We can see that bitcoin failed to clear its resistance zone located at $25000 for the second time this month.
After touching a high of $24230 we can see some downwards correction in the prices towards the $23800 level.
We can clearly see a bullish engulfing pattern above the $22425 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 high of 23922 in the Asian trading session and an intraday low of 23639 in the Asian 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 50 indicating a NEUTRAL demand for bitcoin at the current market levels and the continuation of the consolidation phase in the markets.
Bitcoin is now moving above its 100 hourly simple moving average and its 200 hourly simple moving averages.
Some of the major technical indicators are giving a buy signal, which means that in the immediate short term, we are expecting targets of 24000 and 24500.
The average true range is indicating less market volatility with a mildly bullish momentum.
Bitcoin: bullish reversal seen above $22425
The STOCHRSI is indicating an oversold level
The price is now trading just below its pivot levels of $23858
Some of the moving averages are giving a buy market signal
Bitcoin: Bullish Reversal Seen Above $22425
The price of bitcoin is struggling to move above the $24000 handle after it entered into a consolidation zone below the $24000 level.
The overall scenario of the markets is neutral at present; we will have to wait till some clear signals emerge for the medium-term range.
We can see that Ichimoku price is under the cloud in the 15-minute time frame indicating the underlying bearish nature of the markets.
The immediate short-term outlook for bitcoin is neutral; 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 $22000 and the prices continue to remain above these levels for the continuation of the bullish reversal in the markets.
The price of BTCUSD is now facing its classic resistance level of 23899 and Fibonacci resistance level of 23932 after which the path towards 24000 will get cleared.
In the last 24hrs, BTCUSD has declined by 0.32% by 76$ and has a 24hr trading volume of USD 28.827 billion. We can see an increase of 50.20% in the trading volume as compared to yesterday, which is due to the buying seen by the short-term investors.
The Week Ahead
The price of bitcoin is moving in a consolidation zone under the $24000 level. The price is expected to remain moving into a narrow range between the $23000 and $24000 before any potential breakouts.
The daily RSI is printing at 59 which indicates a bullish market and the move towards the $25000 level.
The trendline formation is seen from the $22400 levels towards the $24000, and we are now looking for the continuation of this trend in the hourly time frame.
The price of BTCUSD will need to remain above the important support level of $22000 this week.
The weekly outlook is projected at $24000 with a consolidation zone of $23000.
Technical Indicators:
The average directional change (14 days): at 15.10 indicating a neutral
The ultimate oscillator: at 68.29 indicating a BUY
The relative strength index (14): at 52.53 indicating a neutral
The commodity channel index (14 days): at -19.17 indicating a neutral
Comment:
Disclaimer: This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.