Bitcoin: USD/BTC (BTC=X) prices crashed hard

Bitcoin: USD/BTC (BTC=X) prices crashed hard

Bitcoin prices crashed hard — dropping almost $800 in a few minutes to show double-digit losses. It was down 11.4% and trading at $8,150 as of publishing time. 

According to data from Coin360, Bitcoin investors are experiencing a painful Tuesday, with BTC/USD hovering close to $8,100. Bitcoin’s rapid drop below $9,800 was the latest move in what was otherwise a slow grind downwards, which began at the beginning of September. 

Bitcoin seemed to be stabilizing around the $8,150 price mark at the time of writing.

The overall cryptocurrency market cap stands at $222 billion at press time, having lost a whopping $20 billion in less than an hour. Bitcoin’s share sits at 69.2%.

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 10,021.76.

The projected upper bound is: 9,295.64.

The projected lower bound is: 7,453.40.

The projected closing price is: 8,374.52.

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 24 white candles and 26 black candles for a net of 2 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 24.3551. This is not an overbought or oversold reading. The last signal was a buy 14 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 24.13. 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 90 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 -244.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -136.500 at 8,439.000. Volume was 51% below average (consolidating) and Bollinger Bands were 18% narrower than normal.

Open     High      Low     Close     Volume___
8,617.9008,808.4508,408.4308,439.000 42,262
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 9,785.62 10,309.83 8,296.28
Volatility: 73 59 80
Volume: 65,451 79,961 83,128

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 1.7% 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 1 periods. Our momentum oscillator is currently indicating that BTC= is currently in an oversold condition.

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