Bitcoin (BTC) bets over $ 20,000, Ripple (XRP) is consolidating record volatility

Price, analysis and chart of Bitcoin (BTC / USD) and Ripple (XRP / USD):

• Bitcoin fails to exceed $ 20,000.
• Ripple’s volatility reaches a new three-year high.

The latest cryptocurrency rally is on pause at the moment with a wide range of coins and tokens consolidating their recent strong gains. Bitcoin continues to lead the way and yesterday hit a new all-time high of just under $ 20,000 and now looks set to move even higher in the coming days. Other tokens and coins have risen hard recently but remain far from the highs of December 2017. BTC’s market dominance remains at just over 62% with the market as a whole capitalized around $ 580 billion.

Bitcoin continues to gain support from a positive moving average setup with all three simple DMs aiming higher and sequentially. Last Thursday’s sell-off was bought back, producing a short-term series of higher lows and highs, while the CCI indicator is only in overbought territory. Short-term support around $ 18,200 – $ 18,400.

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Bitcoin Daily Price Chart (BTC / USD) (April – December 1, 2020)

IG’s latest retail positioning data shows that traders increased their short positions in the recent rally. Data from retail traders shows that 78.18% of traders are net-long with a trader long to short ratio of 3.58 to 1. The number of net-long traders is 5.54% lower than yesterday and 2.37% lower than last week, while the number of net-short traders is 21.26% higher than yesterday and 23, 87% compared to last week.

We typically take a contrarian view to amass sentiment, and the fact that traders are net long suggests that Bitcoin prices may continue to fall.Yet traders are less long net than yesterday and last week. Recent shifts in sentiment warn that Bitcoin’s current price trend may soon reverse higher despite the fact that traders remain long net.

Ripple (XRP / USD) still has a long way to go before it upsets the highs seen in December 2017 when it rose to over $ 3.05, or even higher depending on the exchange used. What is most evident on Ripple’s daily chart is the sharp upward movement in volatility using the ATR reading at the bottom of the chart. Ripple is currently trading around 66 cents while the daily volume reading is nearly 7 cents, the highest level since early December 2017 and the start of the strong highest peak. Once again, all three moving averages are supportive and a retest of last Thursday’s high of $ 0.78 is likely.

Ripple Daily Price Chart (XRP / USD) (June – December 1, 2020)

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What is your point of view Bitcoin and Ripple – bullish or bearish? You can let us know via the form at the end of this piece or you can contact the author via Twitter @ nickcawley1.