The price of bitcoin has hit an all-time-high of almost $20,000 three years after the cryptocurrency last spiked to that level.
Demand for bitcoin has surged during November, with its advocates citing increased institutional investor interest for the digital asset, which was only invented in late 2008 by a still anonymous developer.
The cryptocurrency, which relies on a decentralised ledger, called a blockchain, to record and verify transactions, has endured wild price swings during its short history, even as its fans insist it will upend the traditional financial world.
The last time bitcoin approached $20,000, in December 2017, it crashed spectacularly, losing a quarter of its value during a single day before falling well below the $4,000 mark in late 2018. However, that still represented a dramatic increase in value from prices measured in the hundreds of dollars in 2016, and only cents in 2008.
During 2020 the value of the cryptocurrency has risen by about 170%. On Monday it rose by only 6% but its price had increased by $2,000 since Friday, demonstrating its extreme volatility.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 21,305.49.
The projected lower bound is: 17,911.88.
The projected closing price is: 19,608.69.
A white body occurred (because prices closed higher 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 32 white candles and 18 black candles for a net of 14 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 67.0843. This is not an overbought or oversold reading. The last signal was a sell 8 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 67.28. 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 5 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 131.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 sell 5 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 74.799 at 19,451.039. Volume was 55% below average (consolidating) and Bollinger Bands were 56% wider than normal.
Open High Low Close Volume 19,384.500 19,768.500 19,211.461 19,451.039 281,920
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 18,239.84 15,102.03 11,477.17 Volatility: 107 66 50 Volume: 773,274 634,327 605,083
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 69.5% 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 65 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.