Bitcoin: USD/BTC (BTC=X) Finds Support Around $10,000
At the time of writing, Bitcoin is trading down marginally at its current price of $10,000, which marks a slight recovery from 24-hour lows of $9,900, with this fleeting drop into the four-figure price region being met with significant buying pressure.
Because Bitcoin has been consolidating within the lower-$10,000 region for the past couple of weeks, it is highly probable that the current pattern of trading marks a bout of consolidation before the crypto reaches the apex of the descending triangle that it has been caught within for the past several months.
It is likely that Bitcoin is soon going to incur significant volatility, which could be driven by a combination of the descending triangle resolving and tomorrow’s launch of Bakkt’s physically settled Bitcoin futures platform.
Is BTC Likely to Experience Further Upside?
Many analysts have been pointing to the fact that descending triangles typically result in a bearish downwards break, although the size of this triangle and the market psychology of most market participants believing that this formation will result in further bearishness may prove to be positive things for BTC.
Additionally, analysts widely believe that Bakkt’s launch will prove to be a positive thing for Bitcoin and the aggregated crypto markets.
CryptoGainz, a popular crypto analyst on Twitter, offered his followers a somewhat bullish outlook on Bitcoin’s near-term price action, explaining that a weekly close above its range low of $9,770 may spark some near-term bullishness.
The day ahead may prove to be critical for the establishment of a mid-term trend for Bitcoin, as the culmination of tonight’s weekly close, the apex of the large descending triangle, and Bakkt’s launch, will likely spark some unprecedented volatility.
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 10,250.54.
The projected upper bound is: 10,780.36.
The projected lower bound is: 9,081.77.
The projected closing price is: 9,931.07.
A black body occurred (because prices closed lower 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 25 white candles and 25 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 48.1620. This is not an overbought or oversold reading. The last signal was a buy 12 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 43.14. 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 88 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 -117.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 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 3 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -52.300 at 9,950.580. Volume was 69% below average (consolidating) and Bollinger Bands were 73% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 10,173.25 10,440.49 8,250.83
Volatility: 22 51 78
Volume: 62,165 79,995 82,754
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 20.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 8 periods.