BTCUSD and XRPUSD Technical Analysis – 26th APR 2022
BTCUSD: Double Bottom Pattern Above $38,000
Bitcoin was not able to sustain its bullish momentum last week, and after touching a high of $42,901 on April 21st, started to decline heavily against the US dollar.
The shortselling continued pushing down the price of BTC below the $39,000 handle, after which we saw some consolidation.
A falling trend channel is forming on the chart, expected to push down the price of bitcoin below the $38,000 handle. We can also see a double bottom pattern above the $38,000 handle — which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.
The Stoch and Williams percent range are indicating an overbought level, meaning that in the immediate short term, a decline in the price is expected.
The relative strength Index is at 61 indicating a STRONG demand for bitcoin at the current market levels.
Bitcoin is now moving above its 100 hourly SMA and its 200 hourly exponential MA.
Most of the major tech indicators are giving a BUY signal, which means that in the immediate short term, we are expecting targets of $42,000 and $43,000.
The average true range is indicating LESSER market volatility with a strong bullish momentum.
- Bullish reversal seen in bitcoin above $38,000
- The StochRSI is indicating an OVERSOLD level
- The price is now trading just above its pivot levels of $40,429
- All of the moving averages are giving a BUY market signal
Bitcoin: Bullish Reversal Seen Above $38,000
Bitcoin has moved out of the falling trend we observed last week and now continues to consolidate its gains above the $40,000 handle in the European trading session. The bounce that we have seen above the $38,000 handle is expected to continue this week, and we are now looking at the targets of $42,000 and $45,000 in the medium-term range.
The immediate short-term outlook for bitcoin is bullish; the medium-term outlook has turned bullish; the long-term outlook remains neutral under present market conditions.
We are now looking at possible reversal and short selling at $40,500 and $40,450, as indicated by the MA5 and MA10 crossover pattern. This is further validated by the overbought level seen in the Stoch and Williams percent range.
The price of BTCUSD is now facing its classic resistance level of $40,514 and Fibonacci resistance level of $40,627 after which the path towards $42,000 will get cleared.
In the last 24hrs, BTCUSD has gone UP by 4.83% with a price change of 1859$, and has a 24hr trading volume of USD 32.922 billion. We can see an increase of 27.77% in the trading volume compared to yesterday, which is due to the buying by the medium-term investors.
The Week Ahead
The price of bitcoin touched an intraday high of $40,776 after which we saw some correction below the $40,500 handle.
We are now in the low volatility zone, and a surge in the price is expected leading to the increase in volatility levels.
The on-chain analysis is predicting a short-term rally towards the $45,000 handle this week.
The current market condition is suitable for entering into a BUY position with targets of $43,000 and $45,000 for next week.
This week, the price of BTCUSD will need to remain above the important support level of $40,000.
The weekly outlook is projected at $43,000 with a consolidation zone of $42,500.
The moving averages convergence divergence (12,26): at 252.30 indicating a BUY
The average directional change (14-day): at 51.53 indicating NEUTRAL levels
Bull/Bear power (13-day): at 115.78 indicating a BUY
The relative strength index: at 61 indicating a BUY
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