Bitcoin: USD/BTC (BTC=X) Chances for Bitcoin Recovery Building

Bitcoin: USD/BTC (BTC=X) Chances for Bitcoin Recovery Building

Over the past three days, the asset has been relatively still in the low-$8,000s, having not lost or gained more than 5% in any 24-hour period.

While some believe that this lack of price action is a precursor to yet another bout of consolidation, analysts are starting to expect for Bitcoin to mount on a recovery. One that will bring the cryptocurrency up by at least 10%.

According to Shayne Heffernan, as long as Bitcoin continues to “range between heavy support near $8,000”, the more likely it is that the cryptocurrency will see a nearly 10% bounce to $8,700.

The idea here is that as $8,000 has acted as an important historical level, it will here too. A close below it would be bearish; consistent closes above it implies that bulls have some semblance of control.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 9,431.16.

The projected upper bound is: 8,656.47.

The projected lower bound is: 6,861.72.

The projected closing price is: 7,759.09.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black 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 21.1593. This is not an overbought or oversold reading. The last signal was a buy 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 21.50. This is where it usually bottoms. 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 95 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 -90. This is not a topping or bottoming area. The last signal was a buy 1 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 10 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -205.000 at 7,830.700. Volume was 55% below average (consolidating) and Bollinger Bands were 56% wider than normal.

Open     High      Low     Close     Volume___
7,995.5508,161.9007,737.6107,830.700 38,347
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 8,700.28 9,951.59 8,399.53
Volatility: 75 58 80
Volume: 74,503 80,135 84,022

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 6.8% below 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 6 periods. Our momentum oscillator is currently indicating that BTC= is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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