Monero: weekly market analysis (from 10 January to 16 January 2020 on BTC / XMR pair)

BTC / XMR it's time to reverse

While the bullish candle that formed on day 11 was completely dried up within the same 24 hours, forming a gravestone that has misled many, the strong pump recorded yesterday caused the breakdown of the R1 on the 30D time frame ; at this point, therefore, it is more than legitimate to expect that the push of the bulls will find continuity in the coming days.

 To turn on the enthusiasm of many traders is the weekly time frame, here in fact we see that the price has returned above the EMA20 (it did not happen since March of last year) and this, together with the large bullish divergence that we have seen for months in training on the MACD and a parabolic SAR that has returned bullish can only raise expectations on this currency.

 The convergence of bullish signals is also found on the 1D time frame, here thanks to yesterday's large rise, the parabolic SAR returned to bullish (and frankly I did not think it possible) but, above all, we find that the price has brought abundantly above the EMA100 and that the EMA20, after having cut the EMA50 upwards, is preparing to do the same also with the same exponential moving average at 100 periods.

A quick glance at the clouds of ichimoku, to conclude, confirms that we are in a markedly bullish scenario; in short, it seems the beginning of the much-desired reversal.

Weekly forecast

It was from April last year that we had not seen monero return above the clouds of ichimoku, unlike then, however, today this movement comes after the price has touched the support represented by the October 2016 minimum; the feeling, as mentioned, is that monero is finally reversing the long bearish trend that has been going on continuously for 24 months.

At this moment, therefore, there are excellent chances that XMR will return to 0.01BTC while it is still early to define if the bulls' push will continue even further and will prove to be sufficient to bring the price close to the historical maximum.

What is certain is that the 30D chart is very tempting right now, the sentiment is very high and the bearish cycle has been going on for too long; if I had to bet, therefore, I would bet on a reversal, moreover if you do not venture in circumstances such as the current ones it might be worth not even trying to trade.

Please note: this post is not intended to provide in any way financial advice relating to how to invest your money but has purely educational purposes.