Hodling Has Reached an All-Time High
This makes excellent sense once one considers the economic conditions people everywhere are facing. The coronavirus pandemic has caused major shifts in international economies. fiat currencies have lost a lot of of their stamina over the past several weeks, with the U.S. dollar experiencing huge drops that have taken it to new lows.
As a result, several are looking to assets like bitcoin, gold and others as means of keeping their wealth hedged against economic issues such as inflation. Many see bitcoin as a way of diversifying their portfolios and keeping their cash secure. Several cryptocurrency exchanges, such as Coinbase, even reported $1,200 purchases of bitcoin and other forms of crypto earlier in the year after stimulus checks were issued to Americans that made less than $75,000 per year.
These stimulus checks were worth approximately $1,200 each. Thus, it’s no coincidence that such amounts were also purchased via the exchanges and platforms in question.
The chart goes into detail regarding a number of the specific behaviors of bitcoin holders. Whenever the price goes up, it is shown that almost all BTC fans sell or trade their coins for either USD or USDT (Tether, a well-liked stable currency). However, whenever the currency’s price goes down, hodling goes up, as people tend to keep their coins secure within their digital wallets, refusing to move any funds until the coin shows signs of potential recovery.
The currency may be doing well as of late. The asset recently rose above the $11,000 mark and is jumping a bit everyday (at the time of writing, it’s currently trading for about $11,285). However, for the most part, the currency has been on shaky ground throughout much of 2020. for example, the asset ultimately dropped into the high $3,000 range last March despite trading for well over $10K a month earlier in February.
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 10,016.53.
The projected upper bound is: 11,855.70.
The projected lower bound is: 10,744.75.
The projected closing price is: 11,300.22.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance.
Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white 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 72.7688. This is not an overbought or oversold reading. The last signal was a sell 0 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 82.41. 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 85 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 86. This is not a topping or bottoming area. The last signal was a sell 1 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 12 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -77.330 at 11,262.920. Volume was 18% below average (neutral) and Bollinger Bands were 157% wider than normal.
Open High Low Close Volume 11,848.500 12,131.360 10,559.590 11,262.920 396,324
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 10,744.04 9,564.12 8,712.49 Volatility: 54 35 83 Volume: 675,660 542,682 438,344
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 29.3% 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 19 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.
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