Monero: weekly market analysis (from 13 December to 19 December 2019 on a BTC / XMR pair)

Also last Thursday, in our usual analysis of monero, we wrote that the most likely scenario for this currency saw a recovery in the bearish trend. Today we can therefore say that we were not mistaken, this was a pretty tough week for all the Altcoins, with heavy dumps that hit all the coins without distinction; monero is no exception that seems to be intent on moving quickly towards a new minimum. So let's take a look at the charts immediately and try to understand together what lies ahead in the next seven days.

BTC / XMR we are close to a new low

Looking at the 30D chart the first thing we realize is that there has already been a break in the R1 and, consequently, it is quite spontaneous at this point to expect an R2 test in the 0.0062BTC area; if this level held and monero rebounded it would still be a positive signal, because we would avoid a new low and we could return to being a little optimistic for the future of this currency in a short-term perspective. Moving on to the weekly chart, we immediately realize how important the next support is, broken that, in fact, we could not expect anything other than a return to the historical low, well below the current price levels; always observing this time frame we note that both the parabolic SAR and the MACD are still bullish so the hope is that what we have observed in the last two weeks turns out to be a trivial retracement. Moving on to the 1D graph, however, every bullish fantasy is immediately swept away, in fact here we realize that during the last year monero moved several times in the same way and each time went to touch a new low; the bullish momentum we saw during the month of November, therefore, appears today as a simple bearish continuation pattern for which it is difficult at this moment to expect something good from monero.

Weekly forecast

It's been almost two years now that monero finds himself stuck inside a bearish trend and we still can't see the exit from the tunnel; in the last few weeks it seemed that finally the worst was over, however, the bulls' push ended very soon and today we are back again in a markedly bearish scenario. If, as I fear, even this support should be broken it is almost inevitable that XMR will return to historic lows, around 0.00125BTC; it is better to avoid going long on this currency by blindly counting on a rebound that is anything but discounted and adopting a more prudent approach, patiently waiting for a clear signal of inversion.

Please note: this post is not intended to provide any financial advice regarding how to invest your money, but is for educational purposes only