Bitcoin: USD/BTC (BTC=X) may face resistance at the key Fibonacci retracement level of $9,642
Bitcoin’s (BTC) price closed on a negative note on Tuesday, snapping the longest daily winning streak in 11 months.
The leading cryptocurrency by market value fell 2.87 percent yesterday, having scored 2-5 percent gains in each of the preceding six days.
That was the longest stretch of daily price gains since July 2018. Back then, the price had advanced for seven successive days – from July 13 to July 19 – to hit highs above $7,500, as per data source CoinMarketCap.
The latest six-day winning streak saw bitcoin rise from $8,120 to $9,366, possibly due to the hype surrounding Facebook’s foray into cryptocurrencies, Binance.com’s decision to ban US customers and other factors, as discussed on Monday.
On Tuesday, the social media giant officially launched its cryptocurrency Libra to mixed reviews with many experts calling it a net positive development for bitcoin and cryptocurrencies in general.
Even so, BTC suffered moderate losses, possibly because Facebook’s Libra launch was priced in over the weekend.
Looking forward, the long-term outlook remains bullish with technical charts calling a rise to $10,000. However, in the next 24 hours, a correction to key support near $8,700 could be seen.
As of writing, BTC is trading largely unchanged on the day at $9,135, according to CoinMarketCap.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 10,232.95.
The projected lower bound is: 8,493.48.
The projected closing price is: 9,363.22.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 33 white candles and 17 black candles for a net of 16 white candles.
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 72.7994. This is not an overbought or oversold reading. The last signal was a sell 1 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 70.46. 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 2 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 98. 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 5 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 121.200 at 9,283.700. Volume was 79% below average (consolidating) and Bollinger Bands were 36% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,743.99 7,733.72 4,955.56
Volatility: 29 72 68
Volume: 75,986 85,731 78,197
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 87.3% above its 200-period moving average and is in an upward trend. Volatility is low 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 1 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.