The latest round of downside correction in the Bitcoin market had two triggers: a recovering US dollar and a sentimental shift to the yield-rich decentralized finance sector.
Earlier this week, the US dollar index rebounded from its two-year low, following an optimistic report on the US manufacturing data. That coincided with a reduced demand for safe-haven assets, affecting both gold and Bitcoin.
Meanwhile, the benchmark cryptocurrency’s market dominance fell below 60 percent. It reflected a massive capital shift from the Bitcoin market to a booming decentralized financial sector. Some of the projects listed under the “DeFi” tag has earned their traders up to 5,000 percent YTD gains already.
Nevertheless, these factors have not hurt Bitcoin drastically. The cryptocurrency continues to hold above key support levels, with long-term investors looking at an extended period of lower interest rates and inflation as their reason to stay bullish.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 11,279.42.
The projected lower bound is: 9,329.74.
The projected closing price is: 10,304.58.
A black body occurred (because prices closed lower 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 34 white candles and 16 black candles for a net of 18 white candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 18.1945. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 2 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 35.34. 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 28 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 -291.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 2 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 26 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -501.440 at 10,281.000. Volume was 55% below average (consolidating) and Bollinger Bands were 33% wider than normal.
Open High Low Close Volume 10,782.450 10,821.440 9,987.250 10,281.000 281,037
Technical Outlook Short Term: Oversold Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 11,345.58 11,096.53 9,084.66 Volatility: 60 55 84 Volume: 606,692 742,468 544,381
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 13.2% above its 200-period moving average and is in an downward 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 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 10 periods.