Bitcoin breached $16,000 early Thursday morning, soaring to its highest point since January 2018.
The largest digital currency by market capitalization was trading up 2.4% in the past 24 hours at $16,102 per coin at last check. The cryptocurrency was outperforming broader equity markets with the S&P500 and Dow Jones Industrial Average, as both traded slightly in the red.
This marks an interesting breakout for bitcoin, which for much of the pandemic has traded in lockstep with risk-on assets like stocks.
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 13,161.01.
The projected upper bound is: 17,394.95.
The projected lower bound is: 15,442.70.
The projected closing price is: 16,418.82.
A white body occurred (because prices closed higher than they opened).
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 32 white candles and 18 black candles for a net of 14 white candles.
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 91.0452. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 76.40. 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 6 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 37 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 148.130 at 16,305.380. Volume was 59% below average (consolidating) and Bollinger Bands were 121% wider than normal.
Open High Low Close Volume 16,153.310 16,494.561 16,137.760 16,305.380 242,351
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 15,428.77 12,553.81 10,684.15 Volatility: 63 46 55 Volume: 839,023 488,060 573,338
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 52.6% 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 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 47 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.