Weekly Technical Report on Cryptocurrencies

20 August 2019

BTC USD (CMP: 10695)

Diagram 1: Daily Chart of BTC USD

Bitcoin (along with most other premium cryptos) slowly losing its momentum. The up thrust started in early April & it negated the primary downtrend. After making top at 13500 late June, BTC entered into a phase of retracement and volatility declining.
Diagram 1 shows a large consolidation phase bounded by a pair of rising uptrend line and a falling downtrend line, both effective in the same time. This kind of patterns are called Symmetrical triangle & they work both as continuation or reversal patterns. Violation of the uptrend line at 10230 will signify that sellers are getting more aggressive, confirmation will come below 10050 on closing basis. This could potentially reverse the primary uptrend but is still only a possibility.
On the other hand, violation of the downtrend line will signify that buyers are getting more aggressive, it will be confirmed only above 11890, so that’s a long way upward. But, given the overall muted environment & weakness in other premium Cryptos, there is a higher possibility of demand being outplayed by supply in BTC in near future.

XRP/USD

Diagram 2: XRP Ripple daily Chart (CMP: 0.272)

We had mentioned earlier several times of the weakness in Ripple and as per our expectation; its downtrend is being extended. At this point we should not attempt to pay attention to intrinsic value of the crypto pair & stay with the trend. A depressed market can remain such for a pretty long period of time.
This week, Ripple violated its long held support at 0.294 levels (shown in diagram 2) and made fresh 52 week low. This region of 0.29–0.30 will now act as strong support for this battered pair.
One may sell Ripple at current price with stop loss at 0.300 & target 0.240.