Forex analysis review

Forex analysis review

Major reversal in Bitcoin

Posted: 18 Apr 2021 02:38 PM PDT

Despite making a new all time high and activating an inverted head and shoulders pattern, Bitcoin ends the week under pressure and with a bearish reversal signal. Price has not only broken out of the bullish channel, it has also canceled the bullish inverted head and shoulders pattern. Bitcoin was already warning us with bearish RSI divergence signs. The reversal now is happening. How low can Bitcoin go?

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Red lines - bearish divergence

Green lines - Fibonacci retracements

Blue lines - bullish channel

Bitcoin as we mentioned earlier has broken outside of the bullish channel. Price made a low today around $50,000 and is now trading at $55,800 area. Trend is no more bullish. There are signs that trend is about to change to bearish as price exits the channel. Bitcoin has support at $50,000 and I expect to see the 38% Fibonacci retracement around $41,000 if we break below $50,000. Making a deeper correction to lower Fibonacci levels is still possible but not my primary scenario yet. At current point in time I prefer to be neutral Bitcoin.

The material has been provided by InstaForex Company - www.instaforex.com

Short-term view on XRP/USD for April 19, 2021

Posted: 18 Apr 2021 02:28 PM PDT

XRP/USD made a low today around $1.12 having made a high this week at $1.9617. So far price has retraced 61.8% of the latest rise after the break out at the beginning of April. Price has broken below our horizontal support levels and has reached our next pull back target area which was around $1.10.

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Blue line - support (broken)

Orange line - resistance

Green rectangle - horizontal resistance

Red rectangles- horizontal support levels

Red lines -Fibonacci retracements

XRP/USD has already broken the blue trend line support and as per our analysis this was a sign that a deeper correction was coming. In our last analysis we warned traders that as long as price was trading below $1.80-$1.84 price was vulnerable to a move towards $1.10 specially if $1.40 was broken. Price has now reached the second horizontal support area and 61.8% Fibonacci retracement. This area of support is very important and we already witness a bounce off this support. In order to confirm a major low in place, price will need to break above the orange downward sloping resistance trend line. This resistance is at $1.61. Until then, there is still danger of a deeper pull back below $1.00. 61.8% retracement levels are usually trend change levels, so there are increased chances that price turns around from this support area and starts its next leg higher. If the low is in and we are starting the next bullish move, our target is at $2.55 and next at $3.41.

The material has been provided by InstaForex Company - www.instaforex.com

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