Crypto Update: Ripple and Bitcoin Gold Ripe for Bottom Picking
On our January 30 crypto update, we noted how Bitcoin (BTC/USD), EOS (EOS/USD), and Monero (XMR/USD) are likely to revisit recent lows. Although this forecast make it seem that the markets are bearish in the short-term, it is not all gloom and doom. In fact, the point of that article was to prepare you for the opportunity to buy the support. To prepare you further, we looked at a couple of altcoins that have recently sweeped lows and appear ready to bounce.
In this article, we show how Ripple (XRP/USD) and Bitcoin Gold (BTG/USD) are ripe for bottom picking.
After climbing as high as $0.46669 on December 24, 2018, Ripple slowly bled out as it dropped to support of $0.29 on January 28, 2019. However, it did not take Ripple long to bounce as it rallied on January 30 and 31 to reach $0.3428. While the market has been pulling back since, something tells us that this is just the beginning of the bounce.
Daily chart of XRP/USD
The breach of the diagonal RSI resistance of 40 tells us that the price will likely also take out its diagonal resistance. After all, technical indicator movement often precedes price movement. To increase the likelihood of this scenario unfolding, Ripple most hold the intraday support of $0.302.
A breach of the diagonal resistance will likely send the market up to $0.38. Take that out and Ripple might go all the way up to $0.47.
On the other hand, a move below $0.302 today might cause panic selling. This might drive the market down to $0.25.
If you’re planning to go long on Ripple, the safest route is to wait for the market to take out and retest the diagonal resistance. Place your stop below $0.302.
Bitcoin Gold (BTG/USD)
Another market that looks ready to bounce is Bitcoin Gold. Just like Ripple, the market slowly bled after ascending as high as $17 on December 21, 2018. Over a month later, Bitcoin Gold retouched support of $9.20. If you’re a fan of the market, now is a good time to enter long positions for a quick trade, as Bitcoin Gold is showing signs of bearish exhaustion.
Daily chart of BTG/USD
A look at the daily chart tells us that Bitcoin Gold is revealing reversal signals. The daily candle on January 28 generated a long wick below the body. This is a clear indication that the market is rejecting prices below $9.20. In addition, we can see the daily RSI print a large bullish divergence. Momentum appears to be steadily shifting to the side of the bulls.
If our read is correct, Bitcoin Gold should have the first target at $12.85. Above that, the next target is the range high of $16.50.
Those who are considering to long Bitcoin Gold may try to get positions around $9.20 with a tight stop loss at $8.95.
As the entire crypto market continues to correct, we focused on altcoins that have recently revisited lows and are now showing potential to bounce hard. Ripple is our primary candidate, although Bitcoin Gold is a close second. Investing in these coins with tight stop losses might reward you with handsome short-term gains.
Featured image courtesy of Shutterstock.