Bitcoin falls back below $8,000, keeping XRP's gains under check
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Bitcoin Drops After Failed Breakout
BTC/USD: Price: $7,977 | MCAP: $143 Billion | Trading Volume: $15 Billion
Why we were intrigued:
Bitcoin was trading well above $8,200 on Monday with few observers cheering the top cryptocurrency's move above the 20-day average.
The break above the key average, however, lacked volume support. Also, the double bottom breakout, confirmed on Oct. 11, had failed over the weekend. Failed breakouts are powerful bearish reversal signals, as noted by @NicTrades.
Further, the daily chart indicators maintained bearish stance despite BTC's move above the 20-day MA. The bearish case for a drop below $8,000 was discussed on Monday in the article titled "Bitcoin Faces Drop Below $8,000 Despite Beating Price Resistance."
As expected, BTC fell below $8,000 on Wednesday and hit a low of $7,811 in the early European trading hours today.
Looking forward, the cryptocurrency could carve out a major bottom near $7,400, as the 50- and 200-day moving average are teasing a death cross, a lagging indicator, which trapped sellers on the wrong side of the market in 21015 and 2018.
Read: Looming Death Cross Suggests Bitcoin May Be Nearing Price Bottom
Analysis
The Result
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XRP's Rally Stalls
XRP/USD: Price: $0.2925 | MCAP: $12.63 Billion | Volume: $1.89 Billion
Why we were intrigued:
XRP, the third largest cryptocurrency by market capitalization looked set to rally, having confirmed an upside break of a 3.5-month-long bearish channel with a move to three-week highs on Tuesday.
The breakout was backed by above-50 reading on the relative strength index and the higher bars on the MACD histogram, an indicator used to gauge trend strength.
Also, the breakout was cheered by the investor community and prominent traders such as Bagsey were calling a bullish move.
So far, however, the cryptocurrency has struggled to find acceptance above $0.30, possibly due to the drop in bitcoin, the top cryptocurrency by market value.
The outlook remains bullish with prices holding well above $0.2654, keeping the higher lows setup intact. XRP could rise to $0.32 next week.
Analysis
The Result
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| | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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