Bitcoin: USD/BTC (BTC=X) one step away from testing $6,700 as support
Bitcoin is one step away from testing $6,700 as support, according to prominent analyst DonAlt.
The crypto trader on Monday measured the current bitcoin bias on a three-day timeframe, believing it gave better clarity about the cryptocurrency’s expected price behavior. He noted that bitcoin earlier broke out of a 3-D pennant structure – which also appears like a descending triangle pattern – to the downside. The cryptocurrency’s inability to reenter the range, as shown in the chart below, increased its probability to extend its downward trend.
Two Bitcoin Analysis Confirms $8,200 as Next Support
The prediction follows bitcoin’s strong uptrend in the first half of 2019, wherein the price surged fourfold. Upon establishing $13,868.44 as its year-to-date peak, the cryptocurrency fell by as much as 34.59 percent to $9,071. Since then, it is forming lower highs and lower lows, signaling a bear trend in the near-term.
According to Josh Rager, another noted crypto analyst, bitcoin undergoing a 30-40 percent downside correction after a wild price rally is natural. The trader said in May that bitcoin had eight 30 percent-plus price pullbacks, rightly noting that the cryptocurrency’s next pullback action was “a couple of months away.”
In his recent analysis, Rager noted that the $8,200 is also located just below the CME Bitcoin Futures gap. As many analysts believe, bitcoin spot rate in the coming days would fall to fill those gaps.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 11,290.26.
The projected lower bound is: 7,603.34.
The projected closing price is: 9,446.80.
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 30 white candles and 20 black candles for a net of 10 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 29.4878. This is not an overbought or oversold reading. The last signal was a buy 16 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 41.13. 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 33 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 -92. This is not a topping or bottoming area. The last signal was a buy 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 sell 29 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -77.920 at 9,417.200. Volume was 75% below average (consolidating) and Bollinger Bands were 5% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 9,818.98 10,407.30 6,380.14
Volatility: 40 105 77
Volume: 79,498 91,984 79,513
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 47.6% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of BTC= (mildly bearish). Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 14 periods.