BTCUSD and XRPUSD Technical Analysis – 31st MAY 2022 | Forex Trading Blog | Online Trading Blog

BTCUSD: Bullish Pennant Pattern Above $28,000

Bitcoin was not able to sustain its bearish momentum this week, and after touching a low of 28,009 on 26th May, started to move upwards due to the formation of demand zones above these levels.

Bitcoin entered into a consolidation channel above the $28,000 handle and then corrected upwards touching a high of 32,192 in the European trading session today.

The global investor sentiment has improved from last week, leading to fresh buying by the long-term investors and now we are looking at levels of $32,500 and $35,000.

We can clearly see a bullish pennant pattern above the $28,000 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

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 68 indicating a STRONG demand for bitcoin at the current market levels.

Bitcoin is now moving above its 100 hourly simple and 200 hourly simple MAs.

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 32,000 and 33,500.

The average true range is indicating LESS market volatility with a strongly bullish momentum.

  • Bitcoin: bullish reversal seen above $28,000.
  • The StochRSI is indicating an OVERSOLD level.
  • The price is now trading just above its pivot level of $31,545.
  • All of the moving averages are giving a STRONG BUY market signal.

Bitcoin: Bullish Reversal Seen Above $28,000

Bitcoin continues to move into a consolidation channel above the $31,500 handle in the European trading session today.

We can see the formation of a rising trend channel above the $28,000 handle, and now we are looking at the projected levels of $33,000 and $35,000.

The immediate short-term outlook for bitcoin is strongly bullish; the medium-term outlook has turned bullish; and the long-term outlook remains neutral under present market conditions.

Bitcoin continues to consolidate above its important support level of $31,000 and with increasing demand zone formation the immediate target is $32,500

The price of BTCUSD is now facing its classic resistance level of 31,614 and Fibonacci resistance level of 31,653, after which the path towards 32,000 will get cleared.

In the last 24hrs, BTCUSD has increased by 3.05% with a price change of $937, and has a 24hr trading volume of USD 37.468 billion. We can see an Increase of 39.80% in the trading volume as compared to yesterday, which is due to the fresh buying seen at lower levels.

The Week Ahead

The price of bitcoin is moving in a strongly bullish momentum, and the immediate targets are $32,000 and $33,500.

The daily RSI is printing at 50 which means that the medium range demand continues to be NEUTRAL.

We are now looking at a fresh rally into the markets with targets of $33,500 and $35,000 next week.

The prices of BTCUSD will need to remain above the important support levels of $31,000 this week.

The weekly outlook is projected at $33,500 with a consolidation zone of $32,000.

Technical Indicators:

The moving averages convergence divergence (12,26): at 390 indicating a BUY

The average directional change (14 days): at 45.56 indicating a BUY

The rate of price change: at 3.12 indicating a BUY

The commodity channel index (14 days): at 45.18 indicating a NEUTRAL level

XRPUSD: Bullish Engulfing Pattern Above 0.3750

Ripple was unable to sustain its bearish momentum last week and after touching a low of 0.3762 on 27th May started to correct upwards due to the formation of a demand zone above 0.4000.

We can see the formation of a fresh demand zone above the 0.4100 handle in the European trading session today.

We can clearly see a bullish engulfing pattern above the 0.3750 handle which signifies the end of a downtrend and a shift towards an uptrend.

The short-term outlook for Ripple has turned strongly bullish; the medium-term outlook is bullish; and the long-term outlook is neutral under present market conditions.

The relative strength index is at 66 which signifies a STRONG demand for Ripple at the current market prices and the continuation of an uptrend this week.

All of the moving averages are giving a STRONG BUY signal at the current market levels of 0.4202.

Ripple is now trading above its pivot level of 0.4168 and facing its classic resistance level of 0.4192 and Fibonacci resistance level of 0.4204 after which the path towards 0.4500 will get cleared.

ALL of the major technical indicators are giving a STRONG BUY signal.

  • Ripple: bullish reversal seen above 0.3750
  • The average directional change is indicating an OVERBOUGHT level
  • The average true range indicates HIGH market volatility
  • The daily RSI is below 50 at 41 indicating BEARISH trends

Ripple: Bullish Reversal seen Above 0.3750

We can see a fresh wave of consolidation in Ripple above the 0.4100 handle which further validates that the medium-term uptrend is in focus.

We can see the formation of a white morning star in the hourly chart, and the formation of a bullish harami pattern in the 4-hour chart confirming that now we are looking at the immediate targets of 0.4350 and 0.4500.

We are moving into a consolidation pattern below the 0.4200 level after which a fresh upside wave is expected.

We can see that XRP touched a low of 0.4069 in the Asian trading session and an intraday high of 0.4340 in the European trading session today.

The price of XRPUSD has increased by 5.56% with a price change of $0.02258 in the past 24hrs, and has a trading volume of 1.681 billion USD.

We can see a 63.86% increase in the trading volume of Ripple as compared to yesterday, which is due to buying at lower levels.

The Week Ahead

The price of XRPUSD is now moving in a consolidation channel above the 0.4100 handle, and next visible targets are 0.4250 and 0.4350.

Ripple is now entering into a bullish zone formation and this is expected to continue next week.

Next week also, Ripple is expected to enter a consolidation channel above the 0.4250 handle.

The weekly outlook for Ripple is projected at 0.4450 with a consolidation zone of 0.4300.

Technical Indicators:

The average directional change (14 days): at 37.17 indicating a BUY

The Williams percent range: at -32.15 indicating a BUY

Bull/Bear power (13 days): at 0.0240 indicating a BUY

The commodity channel index: at 106.14 indicating a BUY