XRP/USD, BTC/USD Price Analysis: Ripple Bullish as Bitcoin Steady above $6,000
Latest Bitcoin News
As the industry grow, regulation is important even if Bitcoin and other blockchain projects agitate for complete decentralization and decoupling from government influence. But when reality sets in and advocates realize that the industry can’t get away with fiat if liquidity and volatility is to reign then the importance of Business Growth and Transformation bill (PACTE) which President Macron is working hard for will even be clearer. If everything goes as plan and the legislators approve an amendment bill seeking to reduce capital gains tax from 36 percent to 30 percent traders would enjoy tax reliefs encouraging adoption.
Also Read: Another Warning from China’s Central Bank on Cryptocurrency Risks
While regulation loosens, Mike Novogratz is now retracting his over ambitious BTC target blaming thin volumes and low volatility. Mike, a Bitcoin shill and investor, had famously predicted Bitcoin to test $40,000 by the end of the year banking on institutions to accelerate gains in a FOMO moment. But, that isn’t going according to plan. Instead he expects BTC/USD to close near the $9,000 mark once bulls break above $6,800.
BTC/USD Price Analysis
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Back to price and BTC/USD is all over the place. Even if we retain a positive outlook on price, the mere fact that buyers are failing to build momentum and close above $7,200 is deflating for bulls.
Though prices are trading above $6,000 main support line, this week’s close above the main resistance trend line is positive. It can even be the much needed impetus for bulls to edge past $7,200 igniting bulls aiming for $8,500 in line with our last BTC/USD trade plans.
Latest Ripple News
The uncertainty around SEC XRP interpretation is a major concern for investors. But, this should change now that the SEC plans to publish a reference guide for ICOs. Of course this is positive and is timely for investors cautious on channeling their funds at projects which the US regulator could end up classifying as security complicating matters.
More about Institutional involvement: Dogecoin Creator: Bakkt, Fidelity, and Bitcoin ETF Are Bad for Cryptocurrency
While this is what the sphere needs, XRP is cementing itself as a force in the space. With Cred securing a $300 facility enabling BTC, ETH and XRP coin owners to store their assets at the platform in exchange of USD loans, we expect to see liquidity increase. In a cascading effect volatility should theoretically drop encouraging institutional participation.
After all, in their Q3 XRP Market Report Ripple said direct institutional sales rose from $16.87 million in Q2 to $98.07 million meaning institutions are accumulating XRP.
XRP/USD Price Analysis
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Thing is as long as XRP/USD is above the 40 cents then our last XRP/USD trade plan is valid. In that case we expect traders to add on to their longs in lower time frames. However, this should be done strategically with Fibonacci retracement tool anchored on Sep high low marking potential reaction points.
Already, our buy zone between 55 cents and 40 cents is clear. As such, with every breakout above 55 cents, traders are free to buy at spot. Safe stops would be at 50 cents. So far the conditions of our trade plan has been met. Therefore, we suggest buying at spot in the direction of week ending Sep 23 bull breakout. Like in our previous XRP/USD price analysis, first target is 80 cents and later $1.
All Charts Courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
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