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Ripple (XRP) Rallies Above Key Resistance After Double Bottom Emerges

Ripple started a strong increase from the $0.1820 support zone against the US Dollar. XRP price seems to have formed a double bottom pattern and it could rise further towards $0.2000. Ripple is up more than 4% and it is now trading above $0.1900 against the US dollar. A double bottom pattern is likely forming […]

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Ripple started a strong increase from the $0.1820 support zone against the US Dollar. XRP price seems to have formed a double bottom pattern and it could rise further towards $0.2000.

  • Ripple is up more than 4% and it is now trading above $0.1900 against the US dollar.
  • A double bottom pattern is likely forming near the $0.1820 support zone.
  • There was a break above a key bearish trend line with resistance near $0.1910 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair is likely to break the $0.1950 resistance to continue higher.

Ripple Price Recovers 4%

Ripple price extended its decline below the $0.1880 support level, but it remained stable above the $0.1825 support. XRP seems to have formed a double bottom pattern near the $0.1820 level.

Recently, there was a sharp recovery wave in bitcoin and ripple above $9,400 and $0.1900 respectively. XRP managed to clear many key hurdles near the $0.1900 level and the 100 hourly simple moving average to move into a positive zone.

The bulls pushed the price above the 76.4% Fib retracement level of the downward move from the $0.1922 high to $0.1818 low. There was also a break above a key bearish trend line with resistance near $0.1910 on the hourly chart of the XRP/USD pair.

Ripple Price
XRP Price Recovers 4%. Source: TradingView.com

The pair is now trading above the $0.1922 high and it is likely to test the $0.1950 resistance. It coincides with the 1.236 Fib extension level of the downward move from the $0.1922 high to $0.1818 low.

If ripple surpasses the $0.1950 resistance, it is likely to test the $0.2000 resistance zone to complete the double bottom pattern. Any further gains could lead the price towards the $0.2020 resistance zone in the near term.

Fresh Decline in XRP?

The $0.1950 level is a major hurdle for ripple, followed by the $0.2000 pivot level. Therefore, there are chances of a bearish reaction from $0.1950 or $0.2000.

On the downside, an initial support is near the $0.1900 level and the 100 hourly SMA. The main support is at $0.1888, below which the price is likely to resume its decline.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well above the 50 level.

Major Support Levels – $0.1900, $0.1880 and $0.1820.

Major Resistance Levels – $0.1950, $0.2000 and $0.2020.

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Source: https://www.newsbtc.com/2020/06/16/ripple-xrp-rallies-above-key-resistance-after-double-bottom-emerges/?utm_source=rss&utm_medium=rss&utm_campaign=ripple-xrp-rallies-above-key-resistance-after-double-bottom-emerges

Blockchain

Market Analysis Report (23 Oct 2020)

PayPal Reportedly In Talks to Buy BitGo, Other Crypto Firms | 98% of Unspent Bitcoin Transaction Outputs Currently in a State of Profit | Paxful Repelled 220,000 Bot Attacks in Two Months

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98% of Bitcoin’s unspent transaction outputs (UTXOs) are currently in a state of profit, a level that hasn’t been seen since December 2017, when the price of bitcoin hit its all-time high close to $20,000.

Data shows high levels of bitcoin unspent transaction outputs in a state of profit were typical in previous BTC bull markets, which could indicate a local top is near. The last time BTC’s UTXOs were above 90% was in July 2019, when the price of BTC hit a $13,900 top before a sell-off saw it drop to $7,500 by October of that year.

An unspent transaction output, it’s worth noting, refers to bitcoin remaining after a cryptocurrency transaction was executed, similar to the change received after conducting a cash transaction at a store.

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Blockchain

Bitcoin Increases But Struggles to Sustain Prices Above $13,000

On Oct 23, Bitcoin (BTC) continued the upward move which had accelerated on Oct 19. While the long-term trend is likely bullish, a short-term drop could occur before the price resumes its upward movement. Bitcoin Continues Ascent On Oct 23, Bitcoin continued its upward movement by creating another bullish candlestick that was slightly smaller than […]

The post Bitcoin Increases But Struggles to Sustain Prices Above $13,000 appeared first on BeInCrypto.

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On Oct 23, Bitcoin (BTC) continued the upward move which had accelerated on Oct 19.

While the long-term trend is likely bullish, a short-term drop could occur before the price resumes its upward movement.

Bitcoin Continues Ascent

On Oct 23, Bitcoin continued its upward movement by creating another bullish candlestick that was slightly smaller than the candle that preceding it. Furthermore, yesterday’s wick-high of $13,208 was lower than that of Oct 22, which reached $13,235.

Despite this development, there is no visible weakness in the daily time-frame. The MACD, RSI, and Stochastic oscillator are increasing and there is no bearish divergence present.

Bitcoin Daily MovementBitcoin Daily Movement
BTC Chart By TradingView

Short-Term Double-Top

The short-term chart for BTC does show some signs of weakness, however. On Oct 21, BTC created a shooting star candlestick (blue arrow in the image below), which was the first bearish sign during the upward move.

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Yesterday, the increase that failed to reach the previous high was combined with significant bearish divergence in both the RSI and the MACD, the latter of which has almost crossed into negative.

BTC Short-Term Double TopBTC Short-Term Double Top
BTC Chart By TradingView

Possible Retracement

The Oct 21 high might have marked the top of the third sub-wave (shown in blue below), which is a part of a larger third wave (orange).

Considering the short-term bearish implications from the previous section, a retracement is expected. Even though there are no clear support levels below the current price, we can use Fib retracement levels to determine where the retracement will most likely end.

The price could drop to the 0.382 Fib level of sub-wave 3 at $12,125. The reason for this shallow retracement is a counter to the deep retracement of sub-wave 2, which went all the way down below the 0.618 Fib level. Because of the concept of alternation, we would expect to see the opposite in sub-wave 4.

BTC Wave CountBTC Wave Count
BTC Chart By TradingView

To conclude, while it is likely that BTC is bullish in the longer-term and will move higher, a short-term retracement is expected before the price resumes its upward movement.

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

Source: https://beincrypto.com/bitcoin-increases-but-struggles-to-sustain-prices-above-13000/

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The Best Place to Short Bitcoin is Above $14K, Analyst Explains Why

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Bitcoin bulls will enjoy domination over the market until its price breaches the $14,000-mark, according to Eugene Loza of EXCAVO.

The independent market analyst wrote in his note to investors that he expects to see traders with more exposure in Long trades than the Short ones. He signified his prediction with a technical structure. It envisioned BTC/USD inside an Ascending Channel pattern, inching upward as it awaits to test a sequence of Fibonacci resistance and support levels.

Bitcoin, BTCUSD, XBTUSD, BTCUSDT, cryptocurrency

Bitcoin trade setup, as presented by Eugene Loza. Source: BTCUSD on TradingView.com

The smaller Fibonacci retracement graph in the chart above expired at $12,283 after Bitcoin breached the level on Wednesday. Simultaneously, the cryptocurrency closed in towards the 61.8% level – at $13,037 – of the bigger Fib setup, awaiting a breakout move to the upside.

An $11K Bitcoin Possible

Mr. Loza supported the outlook of an extended bullish move, noting that $13,037 is “not the best place for a short [position].” He added that those who are still trading against Bitcoin’s upside outlook would risk getting liquidated at around $13,350 at a loss.

That would leave Bitcoin with the possibilities of moving further higher towards the 78.6% level of the big Fib. That is around $15,728.

Mr. Loza said that opening a short position anywhere between $14,000 and $15,728 is a “better” call. The range also lies near the upper trendline of the Ascending Channel pattern.

“Once we take the target, there is a possibility of correction to the middle line of the ascending channel,” Mr. Loza added.

The mid-level is below $11,000.

More Downside Outlooks

Mr. Loza’s statements came amid a period of strong buying enthusiasm for Bitcoin. The cryptocurrency this week gained global recognition after PayPal, the world’s leading payments service company, announced to integrate it in its existing line of products.

Before PayPal, its top rival Square, a firm headed by Twitter CEO Jack Dorsey, had shown $50 million worth of BTC in its balance sheets. Another recognized corporation, MicroStrategy, also reallocated $425 million of its cash reserve to Bitcoin, citing its fears of US dollar devaluation amid rising M2 and ultralow interest rates.

Traders assessed the sequence of events as validation of Bitcoin’s growth among prominent firms, both as a service and a financial asset. As a result, the Long positions on BTC/USD jumped dramatically higher than the Short ones, validating that the majority believes Bitcoin is underpriced at current rates.

Michaël van de Poppe, another independent market analyst, showed caution towards overly bullish statements. He said Bitcoin should hold the $12,750-12,800 range to sustain its upside bias. Otherwise, the cryptocurrency risks plunging “towards $12,200 and potentially $11,900.”

Bitcoin, BTCUSD, XBTUSD, BTCUSDT, cryptocurrency

Bitcoin trade setup, as presented by Michaël van de Poppe. Source: BTCUSD on TradingView.com

Mr. Poppe’s medium-term outlook, at the same time, projected an upside continuation towards $14,000. He nevertheless reiterated that “the area between $11,200-11,700” would serve as support.

“In the worst-case scenario around $10,000, but everything is clear and good here,” he added. “Breaking $13,600 area and I think $16,000 is next.”

That somewhat rhymed with Mr. Loza’s prediction of the cryptocurrency.

Source: https://bitcoinist.com/the-best-place-to-short-bitcoin-is-above-14k-analyst-explains-why/?utm_source=rss&utm_medium=rss&utm_campaign=the-best-place-to-short-bitcoin-is-above-14k-analyst-explains-why

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