BTCUSD and XRPUSD Technical Analysis – 19th JULY 2022
BTCUSD: Triple Bottom Pattern Above $19640
Bitcoin was unable to sustain its bearish momentum and after touching a low of 18991 on 13th July started to correct upwards breaching the $22000 handle on 18th July.
We can see a continued appreciation in the price of bitcoin as global investor sentiments have improved leading to buying action seen in the markets at levels above $19000.
The price of bitcoin is poised to clear the resistance zone located at $23000 after which we will see a continuous upsurge in the levels of BTCUSD.
We can clearly see a triple-bottom pattern above the $19640 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 22937 in the Asian trading session and an intraday low of 21588 in the European 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.
Bitcoin is now moving above its 100 hourly simple moving average and 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 22000 and 23000.
The average true range is indicating less market volatility with a bullish momentum.
- Bitcoin: bullish reversal seen above $19640
- The Williams percent range is indicating an overbought level
- The price is now trading just above its pivot level of $21805
- Most of the moving averages are giving a buy market signal
Bitcoin: Bullish Reversal Seen Above $19640
The price of Bitcoin continues to appreciate above the $21000 handle, and we are now testing the important resistance level of $23000 in the European trading session.
The global sentiments continue to improve leading to broad-based buying by the medium-term investors.
We can see the formation of a rising trend channel and are facing the immediate targets of $22000 and $22700.
Bitcoin’s bearish bias was invalidated above $19000, and we can see a correction wave that is stronger than the previous one.
We can see the formation of a bullish ABCD pattern in the hourly time frame which indicates that we are heading towards the $25000 level.
The immediate short-term outlook for bitcoin is bullish; 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 $20500, and the prices continue to remain above this level for the continuation of the bullish phase of the markets.
The price of BTCUSD is now facing its classic resistance level of 21868 and Fibonacci resistance level of 21963 after which the path towards 22000 will get cleared.
In the last 24hrs, BTCUSD has declined by 1.73% by 385$ and has a 24hr trading volume of USD 45.154 billion. We can see an increase of 39.50% in the trading volume as compared to yesterday, which is due to the buying seen by the medium-term investors.
The Week Ahead
The price of bitcoin is moving in a bullish momentum, and the immediate targets are $22500 and $23500.
The daily RSI is printing at 53 which means that the medium range demand continues to remain neutral.
We can see the continuation of the recovery mode in bitcoin with the prices touching the $23000 and $24000 levels next week.
The price of BTCUSD will need to remain above the important support level of $20000 this week.
The weekly outlook is projected at $23500 with a consolidation zone of $22500.
The average directional change (14 days): at 25.10 indicating a buy
The ultimate oscillator: at 59.03 indicating a buy
The rate of price change: at 8.61 indicating a buy
The commodity channel index(14days): at 136 indicating a buy
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