Bitcoin: BTC/USD (BTC=X) Looks Well Positioned To Benefit From a Resurgence In Inflation

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Bitcoin
Ticker: BTC=
Price: $11347.99

Whether or not you’ve heard of Bitcoin, it’s a word and a concept that is not going anywhere. There is a reason why the most prestigious university endowments, such as those affiliated with Harvard, Stanford, and MIT, all invest in crypto funds.

Crypto is building in credibility. If for no other reason than curiosity, investigate Bitcoin and digital assets and see what everyone is talking about. After all, crypto will keep going while we are locked in our homes—a surefire sign that, pandemic or not, crypto is a huge part of our future.

  • The Fed chief is expected to signal tolerance for higher inflation during the speech, with the central bank having mostly missed its 2% inflation target since 2012.
  • “Powell has previously stated that he doesn’t think inflation is a significant risk and is prepared to see it overshoot to meet his objectives,” Charlie Morris, chief investment officer at ByteTree Asset Management, told CoinDesk over WhatsApp.
  • A more relaxed approach to managing price pressures could power a stronger rise in long-term inflation in the U.S.
  • “The major impact for crypto out of this symposium would be a change in monetary policy and further depreciation of the U.S. dollar, which could propel bitcoin higher,” said Matthew Dibb, co-founder of Stack.
  • Inflation is expected by many in the cryptocurrency space to be a driving factor for bitcoin gains, as it’s perceived to be a hedge asset similar to gold.
  • The symposium, attended by central bankers, Federal Reserve members, economists, financial organizations and academics, among others, will be held virtually this year.
  • The 10-year breakeven rate, which gauges the market’s expectations of inflation, has risen to pre-coronavirus levels above 1.6% from a low of 0.5% observed during the March markets crash.
  • Bitcoin has largely tracked the metric higher over the past five months, while the dollar index has declined by nearly 10%.
  • The cryptocurrency has witnessed greater year-to-date gains in U.S.-dollar terms compared to those seen against other currencies such as the euro and Japanese yen:

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 12,238.56.

The projected lower bound is: 10,549.41.

The projected closing price is: 11,393.99.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 33 white candles and 17 black candles for a net of 16 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 29.4327. This is not an overbought or oversold reading. The last signal was a buy 1 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 49.10. 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 19 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 -155.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 17 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed up 85.270 at 11,352.020. Volume was 73% below average (consolidating) and Bollinger Bands were 23% narrower than normal.

Open        High         Low         Close         Volume
11,257.680  11,428.420   11,251.010  11,352.020    164,466
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bearish
Long Term:         Bullish
Moving Averages: 10-period      50-period     200-period
Close:           11,718.59      10,718.53     9,026.15
Volatility:      43             48            84
Volume:          564,743        731,236       527,881

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.

Summary

FOREX BTC= is currently 25.8% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.

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 1 periods.

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