Bitcoin’s (BTC) price has been showing some slight strength in the previous week as BTC rallied from $10,000 to $11,200. However, the crypto market’s overall consensus has been showing weakness with double-digit selloffs for many of the smaller-cap cryptocurrencies.
This selloff appears to have taken hold as Bitcoin price confirmed $11,200 as resistance in the previous weekend.
The 2-hour chart shows a clear rejection at the $11,100-$11,300 area as the negative expectations of a breakout were met.
However, what’s next after such a strong crash in the markets? The $10,200-$10,325 area is a lower time frame support zone and indicators suggest that a relief bounce could be on the tables.
The crucial resistance zone to test and break for a bullish continuation is the $10,700-$10,750 area, which is also unlikely to expect at this time.
If this zone fails to break or the price loses the $10,200 area, investors’ attention will shift back to the untested level around $9,500-$9,700.
This level is still very significant as it is near the open CME gap.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 11,257.43.
The projected lower bound is: 9,586.93.
The projected closing price is: 10,422.18.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 25.1748. This is not an overbought or oversold reading. The last signal was a sell 3 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 42.82. 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 46 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 -45. This is not a topping or bottoming area. The last signal was a sell 2 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 buy 8 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -41.990 at 10,441.010. Volume was 88% below average (consolidating) and Bollinger Bands were 17% narrower than normal.
Open High Low Close Volume 10,497.000 10,548.000 10,353.390 10,441.010 87,883
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 10,755.38 11,206.47 9,205.46 Volatility: 41 47 83 Volume: 569,530 814,697 591,604
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 13.4% above its 200-period moving average and is in an downward trend. Volatility is low 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 bearish on BTC= and have had this outlook for the last 28 periods.