Monero: weekly market analysis (from 27 December to 2 January 2020 on BTC / XMR pair)

As explained last Thursday, all the main altcoins on the market show graphs that somehow resemble each other very much and are characterized, at this stage, by low volumes and a certain indecision that derives, among other things , fearing that a sudden rise in bitcoin favors yet another heavy dump on the alt. The problem, therefore, is to understand if we are in a reversal phase, which will lead the alt to recover the losses accumulated so far compared to bitcoin or if this phase corresponds to the formation of continuation patterns of the bearish trend; so let's immediately take a look at the graphs and try to understand together what to expect from this new year that has just begun.

BTC / XMR is the time to get out of the quicksand

Waiting for the new candle of the month to open what we see on the 30D chart is a test of the S2, which has followed a rebound which, we hope, can bring the price close to the S1; if this should happen in the next few days there would be a good chance that the first candle of the year will open above the pivot point.

Net of this, all the main indicators on the 30D time frame are still bearish, so any fantasy of going long on monero tends to evaporate very easily; it is impossible to clarify our ideas by observing the weekly chart, while instead we recover a little optimism by observing the 1D chart.

Precisely on this time frame, in fact, we see that both the MACD and, as mentioned, the parabolic SAR have returned bullish, while as regards the ichimoku clouds the scenario is still bearish; it is more than legitimate, however, to hope that the monero prices will rise up to at least reach 0.0068BTC, if only for the fact that the price has returned above the 9-period moving average.

Interesting, again on 1D time frame, the RSI which shows both the formation of a bullish divergence and the breaking of the resistance that occurred yesterday, so, at least in the short term, a little optimism in the against monero we can also afford it.

Weekly forecast

Although I take a lot of risk by writing it so explicitly, I'm still bullish on XMR for the next week; after all, the bearish cycle for this currency lasted far too long and, despite the crackdown demanded by the FATF against anonymous cryptocurrencies, we can now say that there was no wave of delisting from the main exchanges as it was legitimate fear it could happen until a few months ago.

It remains to be seen whether it is worth getting into the saddle of monero right now, knowing that this coin is unlikely to break the resistance in the 0.0068BTC zone or if, on the other hand, the game is not worth the candle; this is very dependent on the individual trader's risk appetite.

I personally believe that by now it is starting to be seriously worth considering the possibility of opening a long position on monero, however, for those who do not like risk, it is preferable to wait for a break of 0.0076BTC and, only after, go long without thinking too much about exploiting what, at that point, would become an inevitable pull back.

Please note: this post is not intended to provide in any way financial advice related to how to invest your money but it is purely educational