DISCLAIMER: I am not a financial advisor. All contents on this blog are solely my own personal views and for Cryptocurrency Trading education/entertainment purposes only. Cryptocurrency Trading is very risky. Losses can exceed deposits. Enter with discretion.
Image courtesy of coingape.com and cryptopolitan.com
Hello again! Wherever you are right now, I wish you a very good Monday from here and praying you and your whole family are safe throughout the continued COVID-19 virus pandemic.
I have been so busy with my main work last week so I have only been doing few articles lately but I have to update you all regarding what I am seeing this week ahead for the Crypto markets price action.
I only watch BTCUSD as my main marker for my XRPUSD trades.
I keep mentioning these 2 are very correlated to a high degree! I both hodl these 2 crypto coins and I love them both. Bitcoin is a precious store of value like gold to me while the XRP is a useful utility like the internet which I use everyday.
So today I am writing this article to continue watching the XRPUSD price action as we enter the 2nd week of October 2020. There are a lot of positive fundamental news going on since the crypto markets have entered its last and the 4th quarter trading season for 2020.
I have been watching a close eye on the BTCUSD price action as well, we have seen it lately breaking the 11,000 USD barrier and skyrocketed as high as 11,496.06 per BTC over the weekend last October 10, 2020 only to see it corrected back to the 11,300+ zone levels.
Image courtesy of tradingview.com
I have to be honest, the Bitcoin trading price is OVERBOUGHT in the last 3 trading days in crypto markets which I depict an imminent price correction may soon follow based on my personal technical analysis.
I am quite concerned because we all know that Bitcoin is still King and 100% of the time its price action always trigger ripple effects like water waves on most of altcoins in the crypto markets. Although I admit I might be wrong but it's very imminent to see it right now for the shorterm profit taking point of view.
To backup my claims, let me show you the XRPUSD's price action chart during its July month's bull run where we saw a hard Bitcoin reversal in effect which I have been mentioning a lot on my previous articles.
See image below:
Image courtesy of tradingview.com
I can't disclose the details of what happened here. Just to summarize what happened on this fateful day, XRPUSD hit the 0.32 cent mark only to be corrected, of course in the hard way, after BTCUSD at the same time have been in reverse as well!
Look closely both charts above, they are OVERBOUGHT!
I have been using a very special trading technical indicator to personalized all my views.
So, let's move forward for this week ahead. Like I said earlier, I see the Bitcoin price action indicating a heavily overbought zones, which lots of resistance to the upside as the buyers trying to force the price up only for the greedy shorterm profit takers setting up their sell signals. And that's scary!
I am suspecting lots of people are rushing their tickets way into the Bitcoin and that's one of the reasons of its skyrocketed price. And that's scares me a lot as too many investors may lose specially the leveraged/marginal tradings.
But I will be honest too, XRPUSD will not be heavily affected if corrections occur anytime because I am seeing a very strong technical impulse on its price action in the last 7 days.
Image courtesy of tradingview.com
It recently found its support on the 50-day SMA at 0.25 cent level and its volatility meter is decent compared with Bitcoin. This said support right now is very crucial!
If we try look closely over the entire XRPUSD chart since the start, right now it just started it's bull cycle! Yes, you heard it correctly, XRP has been on a downtrend for a time and it recently broke its downtrend resistance and of course by saying this XRPUSD is pushing ahead to the upside with fashion!
It has been already 1 week after we've seen XRP's latest pump, and to me it's like making a ladder all the way up. Who knows what Ripple's native currency has in store for the remaining days of the 4th quarter trading season for 2020. I am just all hyped right now and biased to say that's XRP is indeed, very, very bullish! ;-)
I know that crypto trading in this type of markets is very risky knowing how crazy the prices may go down or up anytime. But volatility can be also our friend and lesser enemy if we know how to read those charts in advance and being smart when to plunge in.
Please, please do read my disclaimer above!
That's all for today. Once again, thank you for reading this article till the end. I appreciate to get some comments or corrections so please feel free to let me know.
Cheers! God bless and stay safe!
