If there was ever a Fear of Missing Out moment it was Wednesday when Bitcoin hit $20,000 and then just kept on going.
For years, critics have decried the cryptocurrency as a fraud, a rip-off, a sucker’s bet that has no useful purpose in the real world and is simply a vehicle for pure speculation like the tulips of the Dutch Golden Age.
Before you sink your savings into an asset that can drop 10% in a morning with no warning, it may be wise to heed the advice from veteran crypto traders and market experts. There are a lot of forces at work in this run-up only now coming to light, and serious questions about what comes next.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 24,865.43.
The projected lower bound is: 20,852.55.
The projected closing price is: 22,858.99.
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 30 white candles and 20 black candles for a net of 10 white candles.
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.
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 85.2244. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 25 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 74.00. 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 22 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 2 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -112.041 at 22,675.170. Volume was 82% below average (consolidating) and Bollinger Bands were 84% wider than normal.
Open High Low Close Volume 22,793.580 23,095.900 22,350.711 22,675.170 109,917
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 19,717.80 17,499.85 12,333.18 Volatility: 77 71 52 Volume: 646,415 756,986 633,378
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 83.9% 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 2 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.