Both whale clusters and exchange order books show that the $17,000 level is turning into a major support area.
Above $18,500, there is little resistance until the all-time high at $20,000. This means if Bitcoin stays stable above $17,000, the chances for breaking out above $18,500 significantly increase.
Based on whale activity and exchange order books, it has become more unlikely that the price will drop below $17,200. For such a large downside movement to occur, a massive sell order would have to trigger cascading liquidations.
Prior to the intraday recovery of Bitcoin from $17,340 to $18,000, whales on Bitfinex were placing sell orders. Recently, Morra said that Bitfinex has seen more buy orders at the $17,000 support. He wrote:
“In case it dips, Coinbase put a lot of bids (buy orders) below current range. Surprisingly, Bitfinex that was mostly placing sell walls before now has a pretty fat buy wall below.”
Analysts at Whalemap track Bitcoin whale activity by identifying clusters and they said $17,783 and $17,651 have formed as clusters.
These ‘whale clusters’ emerge when large Bitcoin holders purchase BTC at a certain price point and do not move those funds elsewhere. Hence, if whale clusters form at $17,783 and $17,651, it shows that whales bought at those levels and are holding onto their investment.
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 14,401.79.
The projected upper bound is: 19,177.36.
The projected lower bound is: 17,090.21.
The projected closing price is: 18,133.79.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 35 white candles and 15 black candles for a net of 20 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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.
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 78.3810. 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 81.51. 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 13 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 130.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 44 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 47.600 at 17,992.000. Volume was 82% below average (consolidating) and Bollinger Bands were 140% wider than normal.
Open High Low Close Volume 17,956.039 18,056.561 17,704.199 17,992.000 106,604
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 16,867.96 13,459.41 10,978.82 Volatility: 34 48 49 Volume: 659,059 525,705 582,704
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 63.9% 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 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 54 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.