BTCUSD and XRPUSD Technical Analysis – 08th FEB 2022BTCUSD: Double Bottom Pattern Above $36,200Bitcoin continues its bullish momentum this week in the form of a rally, and touched a high of $45,387 in today’s European trading session.
Global buying pressure is observed in bitcoin, and support at lower levels which has managed to push up the prices of BTCUSD above the $44,000 handle.
BTCUSD touched an intraday low of $43,575 in the Asian trading session, and an intraday high of $45,387 today.
We can clearly see a double bottom pattern above $36,200, which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.
Both Stoch and Williams percent Rrange 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 60 indicating a STRONG demand for bitcoin at the current market level.
Bitcoin is now moving above its 100 hourly simple moving average and below its 200 hourly exponential moving averages.
The average true range is indicating lesser market volatility with a bullish zone formation.
- Bitcoin bullish momentum continues above $36,200
- Highs/Lows are indicating a NEUTRAL level
- The price is now trading just below its pivot level of $44,846
- All of the moving averages are giving a BUY market signal
Bitcoin Rally Seen Above $36,200Bitcoin continues its strong bullish momentum, having crossed the $45,000 handle in today’s European trading session.
The immediate short-term outlook for bitcoin is bullish, the medium-term outlook is neutral, and the long-term outlook remains strongly bullish.
The daily RSI is printing at 64 which means that long-term investors have returned to the markets, which can push the prices of BTCUSD above the $50,000 handle.
All of the major technical indicators are giving a STRONG BUY signal, which means that in the immediate short-term we are expecting targets of $45,000 and $48,000.
The price of BTCUSD is now facing its classic resistance level of $45,033 and Fibonacci resistance level of $45,145, after which the path towards $48,000 will get cleared.
In the last 24hrs, BTCUSD has gone UP by 3.81% with a price change of $1,622, and has a 24hr trading volume of USD 31.862 billion. We can see an increase of 48.60% in the trading volume as compared to yesterday, due to increased buying pressure in global cryptocurrency markets.
The total market capitalization of bitcoin has now crossed the $800 billion mark and is currently at 838.161 billion USD.
The Week AheadThe prices of bitcoin are at present moving in a contraction phase after touching the level of $45,000. We can see some short-selling which is the reason for a pullback to the current market level of $44,150.
We have detected MA5 and MA10 crossover patterns at $44,671 and $44,345, which signifies the visible contraction seen in the prices of bitcoin.
In the medium-term, bitcoin’s bullish momentum is expected to continue pushing past the $50,000 handle this week.
The prices of BTCUSD will need to remain above the important support level of $40,000 this week.
We can expect more upsides in the range of $45,000 to $48,000 in the next week.
Bitcoin’s Rally ModeThe prices of bitcoin continue to surge from their lowest level seen on 24th Jan when it touched a low of $33,503.
At the current market price of $44,140 we can see a gain of 31% which is why we can say that bitcoin is in a rally mode, and the prices can continue appreciating towards $50,000 and $55,000 in the coming weeks.
Historically, this is seen as the longest rally after Sept 2021, due to increased global investor sentiments.
Technical Indicators:Commodity channel index (14-day): at 53.50 indicating a BUY
Average directional change (14-day): at 45.17 indicating a BUY
Rate of price change: at 0.495 indicating a BUY
Moving averages convergence divergence (12,26): at 502.00 indicating a BUY
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