Bitcoin: USD/BTC (BTC=X) Price in Hot Water

Bitcoin: USD/BTC (BTC=X) Price in Hot Water

Over the past 48 hours, Bitcoin and the broader cryptocurrency market have been crushed by bears. According to Coin360, the BTC price is now trading at $8,500, 15% lower than two days prior.

This pain may only continue into the coming days and weeks, unfortunately enough. You see, BTC is now sitting under an array of prominent technical supports — the descending triangle bottom, 21-week moving average, and $9,000 horizontal just to name a few.

And it gets worse…

According to the analysts at Trading Room, the 200-day (exponential and simple) moving average for the total cryptocurrency market has recently been lost. They see that if this key technical level is lost, Bitcoin hitting $6,900 to $7,200 “is a likely scenario in the coming days”.

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 9,916.14.

The projected upper bound is: 9,260.48.

The projected lower bound is: 7,435.74.

The projected closing price is: 8,348.11.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 24.4633. This is not an overbought or oversold reading. The last signal was a buy 15 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 23.92. 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 91 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 -170.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 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 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -83.480 at 8,417.500. Volume was 63% below average (consolidating) and Bollinger Bands were 2% narrower than normal.

Open     High      Low     Close     Volume___
8,519.3808,679.7008,300.2008,417.500 31,883
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 9,612.59 10,241.68 8,319.27
Volatility: 74 58 80
Volume: 67,043 79,859 83,302

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 1.2% above 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 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 2 periods. Our momentum oscillator is currently indicating that BTC= is currently in an oversold condition.

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