BTCUSD and XRPUSD Technical Analysis – 23rd NOV, 2021

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BTCUSD: Head and Shoulders Pattern Below $60,000

Bitcoin is moving in continuation of a strong bearish trend this week, and any attempts towards a bullish reversal failed. This is the reason we see BTCUSD trading below the $60,000 handle in the European trading session today.

We can clearly see a head-and-shoulders pattern below the $60,000 level which signifies that we are in a confirmed downtrend.

Yesterday, we saw yesterday BTCUSD touching an intraday high of $59,965 after which the prices started to decline and touched an intraday low of $55,676, with today’s intraday low of $55,864.

We can see a continuous downwards selling pressure in bitcoin today, and more losses are expected in the coming days.

The immediate short-term outlook for bitcoin turned bearish, and now we are looking at levels of $55,000 and $52,000.

Williams percent range is overbought which signifies that more selling is expected today in the US trading session which will push the prices of BTCUSD below the $55,000 handle.

Bitcoin is now moving below both the 100 hourly simple and exponential moving averages.

The average true range is indicating less market volatility which means that markets are due to enter a consolidation phase soon.

  • Bitcoin’s downtrend continues aiming for downsides below $55,000
  • Stoch is indicating OVERBOUGHT levels
  • The price is now trading just below its pivot level of $56,080
  • All moving averages are giving a STRONG SELL signal at current market levels of $56,278

Bitcoin: Strong Bearish Trend Towards $55,000

BTCUSD has already broken its support level of $56,500 and is now about to break its important psychological support level of $55,000.

The price of BTCUSD is trading above its classic support level of $55,242 and Fibonacci support level of $55,874 in the European trading session.

In the last 24hrs, BTCUSD has gone DOWN by -2.21% with a price change of -1271$ and has a 24hr trading volume of USD 35.677 billion.

Bitcoin Bonds

El Salvador has become the first country to issue a $1 billion bitcoin bond with a 10-year maturity on the Liquid Network.

The new bitcoin-linked bond appears to be the highest-yielding fixed income instrument globally. This bond will yield a 6.5% rate of annual interest payments to its investors.

The credit rating for this bitcoin bond is negative due to the distressed-debt situation of El Salvador.

El Salvador adopted bitcoin as legal tender in  June 2021, after which Moody's Investors Service downgraded the long-term foreign-currency issuer and senior unsecured ratings to Caa1 from B3.

The Week Ahead

The downward selling pressure seen in Bitcoin is expected to push its prices to the $52,000 range, after which a fresh wave of consolidation and an uptrend move is expected.

The bearish trend formation continues and is expected to push the prices below the level of $54,000 this week. After touching a low of $52,000, a potential bullish trend reversal is expected for which we will have to wait until next week.

The prices will need to remain above the important support level of $52,682 for a bullish reversal of the markets.

Technical Indicators:

Relative strength index (14-day): at 35.28 indicating a SELL

Average directional change (14-day): at 40.639 indicating a SELL

Moving averages convergence divergence (12,26): at -442.90 indicating a SELL

Ultimate oscillator: at 40.127 indicating a SELL

XRPUSD – Descending Triangle Pattern Below 1.0800

Ripple started this week on a mild bullish tone touching an intraday high of 1.0559, after which the prices have started to decline and touched an intraday low of 1.0211 in the European trading session today.

We can clearly see the descending triangle pattern below the 1.0800 handle which signifies a bearish continuation of a downtrend. This means that the downtrend is expected to continue and we can see much lower levels in the coming days.

The price of XRP touched an intraday high of 1.0511 due to some buying pressure, but the markets are moving in a bearish momentum this week.

This is a false breakout, and we are looking at levels of 1.0500 and 1.0300 as the immediate targets.

StochRSI is indicating a NEUTRAL market, which means that markets are due to enter a consolidation phase and move in a sideways channel today.

The short-term outlook for Ripple is bearish; the medium-term outlook appears neutral; and the long-term outlook is bullish.

Ripple is now trading above its pivot level of 1.0369 and also remains above its classic support level of 1.0333 and Camarilla support level of 1.0387 in the European trading session.

  • All technical indicators are giving a STRONG SELL signal
  • Williams percent range is indicating NEUTRAL markets
  • All the moving averages are giving a STRONG SELL signal
  • Average true range indicates LESS market volatility

Ripple: Bearish Momentum Towards 1.0300

Ripple failed to maintain its bullish momentum against the US dollar this week, but it could eventually push the prices of Ripple towards the $1.0300 handle in the coming days.

Markets are also expected to enter a consolidation phase any time after which a fresh decline in the prices is expected.

This week, we can see XRPUSD touching levels of 1.0300 and remaining in the bearish trend for the week. The immediate target for XRPUSD is at 1.0400 — if it breaks its Fibonacci support level of 1.0406.

The price of XRPUSD has gone DOWN by -1.44% with a price change of -$0.01302 in the past 24hrs and has a trading volume of 2.897 billion USD.

For the last 24 hours,we can see a 10% decline in the trading volumes of Ripple.

This Week Ahead

We can see an increased selling pressure in Ripple which is attributed to the broad based selling observed across all the cryptocurrencies today. The downwards trend is expected to remain in place this week and may end in a consolidation of the prices above the 1.0000 handle.

All the major technical indicators are giving a STRONG SELL signal, so it would be best to enter the markets at current levels.

Technical Indicators:

Commodity channel index (14-day): at -78.90 indicating a SELL

Average directional change (14-day): at 32.80 indicating a SELL

Relative strength index (14-day): at 43.897 indicating a SELL

Bull/Bear power (13-day): at -0.0192 indicating a SELL

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