One thing’s for sure: you don’t want to put a large portion of your capital into cryptocurrencies. They’re speculative and volatile, and there’s absolutely no guarantee that they’ll go up in value.
That being said, Bitcoin’s recent price action is highly encouraging. Bitcoin was stuck at around $9,000 from May through mid-July, but then a breakout of epic proportions took place.
With hardly any warning, Bitcoin shot up like a rocket in July’s back half. By early August, it was trading at the $11,500 level. Thus, the bulls have re-asserted themselves after hiding in the shadows for a while.
Interestingly, the onset of the novel coronavirus put negative price pressure on Bitcoin. Therefore, if there is another huge wave of Covid-19 infections, that could induce another correction in the Bitcoin price.
Yet, just as Bitcoin rebounded this summer, it should be capable of recovering from future crashes. Bitcoin nearly reached $20,000 in late 2017, and the bulls are determined to get it back to that level someday.
A Commitment to Inflation
There’s little doubt that the U.S. Federal Reserve is committed to keeping government-bond yields low. For example, the annual yield on the 10-year Treasury is less than 1%. The “dot plot” recently issued by the Federal Open Market Committee made it crystal clear that bond yields will likely stay low for a while.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 10,249.21.
The projected upper bound is: 12,507.72.
The projected lower bound is: 11,038.16.
The projected closing price is: 11,772.94.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 58.7151. This is not an overbought or oversold reading. The last signal was a sell 9 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 64.74. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 4 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 88. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -122.770 at 11,731.230. Volume was 37% above average (neutral) and Bollinger Bands were 115% wider than normal.
Open High Low Close Volume 11,854.110 11,948.450 11,654.000 11,731.230 756,915
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 11,563.16 9,967.91 8,846.76 Volatility: 57 44 83 Volume: 1,018,128 678,244 482,604
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 32.6% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods.
Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 28 periods.