Forex analysis review

Forex analysis review

Bitcoin tumble continues

Posted: 16 May 2021 01:35 PM PDT

Bitcoin is breaking below $47,000 and our first pull back target of $43,000-$40,000 is getting closer. Technically short-term trend has reversed and price today broke below key support levels. The bearish warnings in Bitcoin were given a couple weeks back when we warned bulls that the bearish divergence signs should not be ignored. Additionally the rejection at important Fibonacci resistance around $58,000 and the creation of a lower high added to our worries and we warned traders again that price was vulnerable to another sell off below $50,000.

analytics60a17feedc4e0.jpg

Red line - support

Blue lines -Fibonacci retracements

Bitcoin is making lower lows and lower highs on a Daily basis. Price is approaching our first target which is the 38% Fibonacci retracement of the rally from the 2018 lows. Potential to move lower exists. A pull back even towards the 61.8% retracement is justified and possible as we explained in previous posts. This was not the time to be bullish Bitcoin as all the signs of an imminent pull back were noted on time and several times. Our first warning came on April 14th when price was making new highs and we warned that a reversal below $59,000 could lead to a deeper pull back towards $40,000. Our analysis warned bulls again on April 18th.

Bulls need to be cautious now. Bears are in control of the short-term trend and we might see them take control of the medium-term trend as well as a major high could be in.

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

XRP provides a bullish signal.

Posted: 16 May 2021 10:56 AM PDT

XRP/USD broke above $1.45 today and the important short-term resistance trend line. Price reached as high as $1.61 and is now pulling back towards $1.45. Today's price action is an important bullish signal for two reasons. Price has made an important reversal off the 61.8% Fibonacci retracement and broke an important resistance trend line and moved also above an important horizontal resistance level.

analytics60a15bdc30803.jpg

Red line - resistance (broken)

Blue lines - Fibonacci retracements

XRP/USD has started a new sequence of higher highs and higher lows. Support remains key at $1.20 area and bulls do not want to see price below this level. A break to new higher highs above $1,61 will be another bullish signal and a confirmation that bulls are retaking control of the trend. If $1.61 breaks now we expect price to at least reach the previous highs at $1.97 and most probably break it. Price action is starting to favor bullish setups as bulls are gaining control of the trend. $1.20 can develop to be considered an important major low if prices continue higher above $2.

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

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