The digital currency has a market value north of $500 billion. Think Bitcoin is just a fad? It’s worth more than Visa (V) or Mastercard (MA). Or Walmart (WMT).Bitcoin passed $20,000 for the first time just 11 days ago. Now it’s knocking at $30,000’s door.Its rapid rise has been remarkable — or insane, depending on your appetite for risk. But there’s some logic to the run-up: Investors are pouring money into bitcoin and other cryptocurrencies during the Covid-19 pandemic as the Federal Reserve sent interest rates near zero (and expects to keep them there for several more years), severely weakening the US dollar.
That makes bitcoin, comparatively, an attractive currency. There’s a set limit to the number of bitcoins on the planet, and investors believe that once the supply runs out, the digital coin’s value can only increase.
As bitcoin surges to all-time highs, cryptocurrency brokerage Coinbase, the most prominent cryptocurrency exchange, has signaled its intent to go public. Still, the recent cryptocurrency surge is showing signs of a melt-up — over-enthusiasm fueled by the fear of missing out, not simply market fundamentals. Take Elon Musk’s sarcastic tweet about bitcoin rival Dogecoin last week: The digital coin, which itself was constructed as a cryptocurrency parody, shot up 20% immediately after Musk threw his support behind it on Twitter.
But he also highlighted bitcoin’s staying power over the course of the past decade: If you took $1 and put 99 cents of it in cash and a penny in bitcoin, that investment strategy would have outperformed $1 invested in the S&P 500 (SPX) over the last 10 years, he noted.
Bitcoin’s best days are ahead of it, but it’s going to be volatile and I think people need to be prepared for it
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 21,008.96.
The projected upper bound is: 29,398.12.
The projected lower bound is: 25,161.51.
The projected closing price is: 27,279.81.
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 31 white candles and 19 black candles for a net of 12 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 80.5323. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 85.86. 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 32 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 12 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 301.250 at 27,050.039. Volume was 22% below average (neutral) and Bollinger Bands were 204% wider than normal.
Open High Low Close Volume 26,766.000 27,329.789 25,770.000 27,050.039 512,802
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 24,394.01 19,509.48 13,070.61 Volatility: 52 69 53 Volume: 886,977 804,569 661,645
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 107.0% above its 200-period moving average and is in an upward trend. Volatility is high 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 12 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.