BTCUSD and XRPUSD Technical Analysis – 16th AUG 2022
BTCUSD: Bearish Engulfing Pattern Below $25196
Bitcoin was unable to sustain its bullish momentum and after touching a high of 25196 on 15th Aug started to decline against the US dollar, coming below the $24000 handle today in the Asian trading session.
We can see that bitcoin failed to clear its resistance zone located at $25500 for the third time this month.
After touching a high of $25196, we can see some downward correction in the price towards the $23776 level.
We can clearly see a bearish engulfing pattern below the $25196 handle which is a bearish reversal pattern because it signifies the end of an uptrend and a shift towards a downtrend.
Bitcoin touched an intraday high of 24250 in the Asian trading session and an intraday low of 23787 in the Asian trading session today.
Both the STOCH and Williams percent range are 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 43 indicating a weak demand for bitcoin at the current market level and the continuation of the selling pressure in the markets.
Bitcoin is now moving below its 100 hourly simple moving average and its 200 hourly simple moving average.
Some of the major technical indicators are giving a sell signal, which means that in the immediate short term, we are expecting targets of 23500 and 23000.
The average true range is indicating less market volatility with a mildly bearish momentum.
- Bitcoin: bearish reversal seen below $25196
- High/Lows is Indicating Neutral Levels
- The price is now trading just above its pivot level of $24017
- Most of the moving averages are giving a strong sell market signal
Bitcoin: Bearish Reversal seen Below $25196
The price of Bitcoin dipped to a low of 23828 after which we can see some buying support and a move towards the consolidation phase in the markets.
The BTCUSD is attempting a downside break due to the formation of a contraction triangle below the 24804 level.
We can see the formation of the Ichimoku bearish crossover pattern in the 4-hour time-frame indicating the underlying bearish nature of the markets.
The immediate short-term outlook for bitcoin is bearish; 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 $23000, and the prices continue to remain above these levels for any potential bullish reversal in the markets.
The price of BTCUSD is now facing its classic support level of 23873 and Fibonacci support level of 23982 after which the path towards 23000 will get cleared.
In the last 24hrs, BTCUSD has increased by 0.22% by 53$, and has a 24hr trading volume of USD 29.478 billion. We can see a 2.30% decrease 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 $24000 level. The on-chain analysis also suggests that the markets are having more bearish tendencies and as such a drop in the levels is expected.
The daily RSI is printing at 58 which indicates a strong demand from the long-term investors.
The trendline formation is seen from the $25196 level towards the $23069, 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 $23000 this week.
The weekly outlook is projected at $24000 with a consolidation zone of $23500.
The rate of price change: at -1.38 indicating a SELL
The ultimate oscillator: at 48.61 indicating a SELL
The relative strength index (14): at 49.35 indicating a NEUTRAL
The commodity channel index(14days): at -110.88 indicating a SELL
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