Hello traders! In this analysis, we will look at the Monero coin versus the Bitcoin (XMR/BTC). The goal is to understand long term price direction and obviously key support and resistance levels.
Below is the XMR/BTC weekly chart, where we can see that price has started to produce higher highs and higher lows. This is the first indication of the uptrend and we might currently witness a long term trend reversal point, from downtrend to an uptrend.
After reaching 0.009475 BTC high, the price corrected down but found the support at 76.4% Fibonacci retracement level, which was rejected cleanly. While there was spike produced below that price, it never managed to break and close below the 76.4% Fibs with confidence.
Such price action should result in further growth in the long run and one of the Fibonacci levels should be used as a potential target. The one level which stands out from others is 61.8% Fibs at 0.011 BTC because it also corresponds to the 161.8% Fibs retracement level applied to the recent corrective wave down.
The next chart is on the Daily timeframe, where XMR/BTC rejected the uptrend trendline after which broke above the 200 Exponential Moving Average. All-in-all, we can see that there is massive support being formed near 0.007650 BTC, which previously was a resistance level. As long as price remains above this level, uptrend continuation should be inevitable. Another thing worth noting is the key resistance, also corresponds to the 88.6% Fibs retracement on the Daily chart. This means that 0.011 BTC target level is now confirmed by 3 different Fibonacci retracement levels.
Finally, down below is the 4-hour chart, where we can see a clear uptrend. Based on the Elliot Wave Theory, we can see that XMR/BTC could have accomplished an ABC correctional phase and another 5-wave uptrend is about to begin. Overall, it seems like Moneo is very bullish in the short, medium and long term.
Bias: Strongly bullish while above 0.007650 BTC
Potential Support Zone: 0.007650 – 0.008000 BTC
Potential Targets: 0.009136, 0.010093, 0.011050, 0.012234, 0.013223
Have a profitable trading!