BTCUSD and XRPUSD Technical Analysis – 21st DEC, 2021BTCUSD: Double Bottom Pattern Above $45,000Bitcoin started the week on a bearish tone by breaking the $46,000 handle, and touching a low of $45,578 in yesterday’s US trading session.
After this decline, we saw a renewed buying pressure which continues to push the prices higher in today’s European trading session.
The global fall in cryptocurrencies is happening because of the emergence of the Omicron coronavirus variant, as well as the approaching ending of the year whereby the investments in the financial markets is at its lowest.
Bitcoin has gone back in the bullish channel and been trading above the $48,000 handle; we could see more upsides in the range of $49,000 to $49,500 later today.
Now, we can clearly see a double-bottom bullish reversal pattern above the $45,000 handle signifying the end of a downtrend and a shift towards an uptrend.
At present, the bitcoin price is trading in a consolidation phase above the $48,000 handle, which is expected to continue in the US trading session.
Both the Stoch and StochRSI are indicating an OVERBOUGHT level meaning that in the immediate short-term, a decline is expected.
Bitcoin is now moving above its both 100 hourly simple and exponential moving averages.
The average true range is indicating a lesser market volatility, which means that markets will enter a consolidation phase soon.
- Bitcoin trend reversal is seen above $45,000
- The Williams percent range is Indicating an OVERBOUGHT level
- The price is now trading just above its pivot level of $48,572
- All the moving averages are giving a STRONG BUY signal at the current market level of $48,676
Bitcoin’s Bullish Reversal Above $45,000 ConfirmedWe can now see that the bullish trend for bitcoin remains intact, and the prices are expected to cross the important psychological resistance level of $50,000 very soon.
All of the major technical indicators are giving a STRONG BUY signal, which means that we can expect a fresh rally coming into the markets any time.
The price of BTCUSD is now facing its classic resistance level of $48,691 and Fibonacci resistance level of $48,808, after which the path towards $50,000 will get cleared.
In the last 24hrs, BTCUSD has gone UP by 5.17% with a price change of $2,393, and has a 24hr trading volume of USD 31.610 billion. We can see an Increase of 11.33% in the trading volume as compared to yesterday. This increase happened thanks to the increased buying pressure after the confirmation of the bullish channel.
The Week AheadWe can see that bitcoin has started its long overdue upside correction, and the price has reached the consolidation level above the $48,000 mark.
The medium to long-term outlook remains BULLISH for bitcoin with targets of $52,000 to $55,000.
The relative strength index is above 70, indicating a stronger demand for buying BTCUSD in the markets.
At present, long-term buyers can enter into markets with a time frame of 6 months to 1 year.
90% of Bitcoins MinedOver the course of 12 years, 90% of all bitcoins have been mined, explaining the increase in global circulation levels and market liquidity of available coins.
According to the Bitcoin founder Satoshi Nakamoto, the total supply is 21 million; the mining of the remaining 10%, however, will take 120 years due to the halving process.
Crypto in 2021In 2021, we saw massive inflows in crypto and bitcoin, something that led to the increase in total market capitalization and massive gains for long-term investors who had invested in the beginning of the year.
In total, we saw capital inflow of more than USD 30 billion — this is why 2021 has been nicknamed the Year of Crypto. In comparison, the capital inflow in 2018 was at USD 8 billion, the second best year for crypto investors globally.
Technical Indicators:Relative strength index (14-day): at 73.68 indicating a BUY
Average directional change (14-day): at 47.40 indicating a BUY
Rate of price change: at 5.542 indicating a BUY
Moving averages convergence divergence (12,26): at 496.50 indicating a BUY
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