Bitcoin prices approached $19,000 today, moving closer to hitting a fresh, all-time high at a time when institutional investors are increasingly taking an interest in the space.
Bitcoin has spent much of the last few weeks fluctuating between $18,000 and $20,000, and the latest rally took place after the cryptocurrency fell below $17,600 yesterday and then proceeded to climb.
When explaining these latest gains, analysts pointed to technical support and the impact of recent developments involving institutional investors.
Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, commented on the digital asset’s latest price movements, describing $18,000 as “an accurate support level.”
Tim Enneking, managing director of Digital Capital Management, also provided some input, emphasizing that:
“There is a lot of space between $13.7k and $19.8k with very little technical ammunition to determine support and resistance levels – simply because, historically, the price has spent an immaterial amount of time in that range. Therefore, traders naturally gravitate toward numbers which end in a lot of zeros.”
He noted that many of the fluctuations we have seen this month have involved bulls and bears pushing the digital asset between price levels like $18,000 and $19,000.
The cryptocurrency’s latest price movements have taken place against a backdrop of institutional adoption, with the most recent example being insurance giant MassMutual’s decision to buy $100 million worth of bitcoin for its portfolio.
To add to this, Ray Dalio, and founder, co-chairman and co-chief investment officer of hedge fund Bridewater Associates, recently generated headlines for taking a more optimistic stance on bitcoin.
During a Reddit “ask me anything” session that took place on December 8, Dalio stated that:
“I think that bitcoin (and some other digital currencies) have over the last ten years established themselves as interesting gold-like asset alternatives, with similarities and differences to gold and other limited-supply, mobile (unlike real estate) storeholds of wealth.”
John Todaro, director of institutional research for TradeBlock, described these developments nicely:
“Institutional investors and traders remain open and interested in bitcoin—arguably the most open they have been in the history of the asset, which continues to be positive.”
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 20,968.63.
The projected lower bound is: 17,380.30.
The projected closing price is: 19,174.47.
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 29 white candles and 21 black candles for a net of 8 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.
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 68.7291. This is not an overbought or oversold reading. The last signal was a sell 21 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 58.06. 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 18 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 18 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 942.939 at 19,052.400. Volume was 71% below average (consolidating) and Bollinger Bands were 5% wider than normal.
Open High Low Close Volume 19,265.029 19,266.750 18,956.811 19,052.400 170,689
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 18,692.08 16,841.32 12,092.18 Volatility: 48 66 50 Volume: 661,448 733,120 626,938
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= gapped up today (bullish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
FOREX BTC= is currently 57.6% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 3 periods.
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