Bitcoin and XRP have both recovered strongly since their massive fall last month amid a panic sell-off caused by covid-19 that rocked the stock market. The V-shaped bottom and the previous peak are likely to form an extremely rare diamond bottom pattern on two crypto assets.
Bitcoin and XRP target further upside
The No. 1 and No. 3 cryptocurrencies by market capitalization had breakout performances in early 2020, leading to strong protests.
Bitcoin price rose from $ 6,800 to more than $ 10,000 and XRP rose from less than 20 cents to over 34 cents, before the upcoming recession panic got out of control and brought nearly every major financial asset. collapsed.
Bitcoin dropped more than 50% in 24 hours, slipping below $ 4,000 at a low level. XRP, with the same decline, has dropped to only 10 cents.
Both recovered strongly, approaching the beginning of the year, before the economic crisis and pandemic-related lockdowns began.
Price action has resulted in an extremely rare pattern forming on the USD trading pair for both Bitcoin and XRP.
The extremely rare pattern discovered on the BTCUSD and XRPUSD price charts is named after the rare gem whose pattern has a similar shape.
BTC USD chart. Source: TradingView
Diamond is enduring and it also creates or breaks the neutral pattern on financial assets, with a chance of breaking 50/50 in both directions. Although uncertain in the direction of the breakout formation, these diamond patterns are often found at the beginning or the end of the trend.
In diamond bottom patterns, according to chart model expert Thomas Bulkowski, the volume often decreases and the side is slightly sloping up. Diamonds are perfectly symmetrical models.
XRP USD chart. Source: TradingView
The model, if confirmed with a spike in volume, will bring Bitcoin price to $ 11,700 and XRP price to more than 37 cents, setting a new high in 2020 for underperforming altcoins.
Such a move will set higher highs and higher highs on longer time frames, a staggering bullish signal for Bitcoin and the rest of the cryptocurrency market before the upcoming and upcoming BTC halving of BTC. the fall last month.
The strong rebound here could prove that the bear market ended with cryptocurrencies and their hard-coded digital scarcity will soon shine in the era of inflation, due to loosening Federalism. and printing money continuously to prevent further economic crisis.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Bitcoinist
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