Bitcoin witnessed yet another surge in prices last week, breaking through the $14,000 and $15,000 levels and edging towards USD 16,000. With increasing positive news in the blockchain world and an indecisive legacy market, Bitcoin’s price could easily reach the USD 20,000 mark yet again after 2 years of a price-action rollercoaster.
Bitcoin Price Technical Analysis
From October 2020 to date, Bitcoin’s price increased by almost 45%. This metric is considered huge in traditional financial products, hence attributed to a somehow risky trait. For blockchain enthusiasts who truly believe in the technology, this is very normal, as some financial models predict Bitcoin to reach USD 100,000 by 2021.
After a volatile weekend, the Bitcoin price managed to go back to its 15.5K mark. The price adjusted heavily down 6% and recovered back well above the USD 15,000 psychological price.
This phenomenon is very natural whenever there’s a strong uptrend.
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 12,739.82.
The projected upper bound is: 16,441.01.
The projected lower bound is: 14,467.97.
The projected closing price is: 15,454.49.
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 30 white candles and 20 black candles for a net of 10 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.
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 73.1762. This is not an overbought or oversold reading. The last signal was a sell 3 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 70.45. 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 3 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 82. This is not a topping or bottoming area. The last signal was a sell 0 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 34 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -25.490 at 15,357.010. Volume was 79% below average (consolidating) and Bollinger Bands were 96% wider than normal.
Open High Low Close Volume 15,391.500 15,437.890 15,184.540 15,357.010 126,512
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 14,694.75 12,214.47 10,556.97 Volatility: 66 48 55 Volume: 775,192 472,917 565,716
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 45.5% 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 44 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.