BTCUSD and XRPUSD Technical Analysis – 18th JAN 2022

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BTCUSD: Double Top Pattern Below $44,000

Bitcoin was unable to carry the bullish momentum seen last week and touched a high of $44,432 on 13th January, after which the decline started which continues to push its prices lower in the European trading session today.

Today, BTCUSD touched an intraday low of $41,458 and continues to remain under heavy selling pressure by the global investors.

We can clearly see a double top pattern below the $44,000 handle which signifies the end of an uptrend and a shift towards a downtrend.

Stoch and StochRSI is indicating an OVERBOUGHT level which means that in the immediate short-term, a decline in the prices is expected.

The relative strength index is at 42, indicating a WEAKER demand for bitcoin and selling pressure in the markets.

Bitcoin is now moving below its 100 hourly simple moving average and below its 200 hourly exponential moving average.

The average true range is indicating high market volatility with a bearish zone formation.

  • Bitcoin trend reversal is seen below $44,000
  • Williams percent range is indicating an OVERBOUGHT level
  • The price is now trading just above its pivot levels of $41,829
  • All of the moving averages are giving a STRONG SELL market signal

Bitcoin: Bearish Reversal Below $44,000 Confirmed

Bitcoin is forming a bearish reversal pattern as the prices continue to decline in the European trading session today.

The immediate short-term outlook for bitcoin is bearish, medium-term outlook is neutral, and the long-term outlook remains bullish.

All the major technical indicators are giving a STRONG SELL signal, which means that in the immediate short-term we should expect targets of $41,000 and $40,000.

The price of BTCUSD is now facing its classic support level of $41,205 and Fibonacci support level of $41,683, after which the path towards $40,000 will get cleared.

In the last 24hrs, BTCUSD has gone DOWN by 2.28% with a price change of 977$, and has a 24hr trading volume of USD 23.214 billion. We can see an increase of 16.29% in the trading volume as compared to yesterday. This increase can be attributed to the increased selling pressure seen in the cryptocurrency exchanges globally.

The Week Ahead

The price of Bitcoin continues to slide without any visible upside correction. This is also due to the bearish trend which started below the $44,000 handle.

At these levels many of the new and long-term investors are also expected to enter into the markets for long-term gains.

If the prices continue to remain above the important support level of $40,000, we could see an upside correction towards the $44,000 handle in the next week.

The ON-chain metrics are also suggesting that the price of bitcoin is expected to touch the $40,000 handle after which could see a bullish pattern with a rally towards $45,000.

Technical Indicators:

Commodity channel index (14-day): at -63.44 indicating a SELL

Average directional change (14-day): at 33.49 indicating a SELL

Rate of price change: at -0.268 indicating a SELL

Moving averages convergence divergence (12,26): at -183.30 indicating a SELL

XRPUSD: Double Top Pattern Below 0.8000

Ripple was unable to sustain its bullish momentum this week and touched a high of 0.8072 on 12th January, after which we could see a continuous decline in the prices.

Today, Ripple touched an intraday high of 0.7684 in the Asian trading session, and an intraday low of 0.7356 in the European trading session.

We can clearly see a double top pattern below 0.8000, which is a bearish reversal pattern signifying the end of an uptrend and a shift towards a downtrend.

The short-term outlook for Ripple has turned bearish, the medium-term outlook remains neutral, and the long-term outlook is bullish.

The relative strength index is below 50 at 38 which signifies a weaker demand for Ripple and a bearish market.

All the moving averages are giving a STRONG SELL signal.

Ripple is now trading just above its pivot level of 0.7431, facing its classic support level of 0.7284 and Fibonacci support level of 0.7390 in the European trading session.

  • All technical indicators are giving a STRONG SELL signal
  • Ripple has entered into a bearish channel below 0.8000
  • Stoch is giving a NEUTRAL signal
  • Average true range indicates HIGH market volatility

Ripple: Bearish Reversal Below 0.8000 Confirmed

Ripple is now moving into a bearish channel formation below 0.8000, and we can see a continuous decline in its prices in the European trading session today.

Ripple was unable to sustain its bullish momentum, and the decline is a result of the heavy selling pressure seen across the cryptocurrency exchanges worldwide.

The price of XRPUSD has gone DOWN by -2.49% with a price change of $-0.01915 in the past 24hrs, and has a trading volume of 1.496 billion USD.

We can see a 19.62% increase in the trading volumes of Ripple in the last 24 hours, which appears to be normal.

This Week Ahead

The prices of XRPUSD have started to move in a strong bearish channel, and we could see levels of 0.7000 this week.

The overall outlook for Ripple remains BEARISH at present market conditions.

If we are looking for any upside correction, then the price of Ripple will need to remain above its important support level of 0.7000.

Also, new investors are not willing to enter into the markets due to the US SEC pending case against Ripple Labs.

The weekly outlook for Ripple is projected at 0.7000 with a consolidation zone of 0.7200

Technical Indicators:

Moving averages convergence divergence (12,26): at -0.005 indicating a SELL

Williams percent range: at -65.50 indicating SELL

Average directional change (14-day): at 32.16 indicating a SELL

Rate of price change: at -1.91 indicating a SELL

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