Bitcoin and the aggregated cryptocurrency market are presently consolidating after BTC, ETH, and other altcoins ran into insurmountable resistance this past Saturday.
Despite the selling pressure here being heavy, it is essential to notice that the cryptocurrency remains technically strong, because it has yet to see any harsh rejection.
As for what this means for where it’s going to trend next, one trader is expecting it to see some near-term downside before it can push any higher.
There is one recent technical development, however, that shows BTC dips are for buying in the near-term.
The benchmark digital asset was just ready to break out of a multi-year bull pennant, which analysts claim may be a crucial factor to consider in the near-term.
Bitcoin Struggles To Break Key Resistance As Analysts Eye A Pullback
At the time of writing, Bitcoin is trading up marginally at its current price of $11,868. this is around the level at which it has been trading throughout the past several days.
Last weekend, BTC ran as high as $12,000 before it hit insurmountable resistance that sparked the ongoing consolidation phase.
One analyst is currently noting that he expects BTC to retest its support at $11,350 before it will rally past the resistance it is currently facing.
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 10,206.97.
The projected upper bound is: 12,642.05.
The projected lower bound is: 11,223.96.
The projected closing price is: 11,933.00.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 81.9216. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 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 72.78. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 3 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 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 17 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 23.300 at 11,882.130. Volume was 43% below average (neutral) and Bollinger Bands were 180% wider than normal.
Open High Low Close Volume 11,852.750 11,921.530 11,629.000 11,882.130 294,194
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 11,466.98 9,789.86 8,784.89 Volatility: 58 43 84 Volume: 802,717 601,247 458,498
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 35.3% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term.
Our volume indicators reflect moderate flows of volume into BTC= (mildly bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 24 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.