The Founder of Knightsbridge Live one of Asia’s leading financial services companies with an online FX brokerage has penned a report drawing on similarities between the 1970s gold market and bitcoin.
The whole of bitcoin’s existence has been characterized by major price swings, “exactly the kind of thing that sustains a long-term trend,” said Shayne Heffernan, founder, and CEO of Knightsbridge Live FX market insight product, in his report solely intended for the companies institutional clients.
Heffernan pointed to bitcoin’s weekly chart and used technical analysis (TA) of prior highs and lows to determine a target of $145,000 by October 2021.
After starting a decent recovery wave, bitcoin price climbed above the USD 23,500 resistance. BTC even spiked above USD 23,880, but it struggled to gain pace above the USD 24,000 level. It is currently trimming gains and trading well below USD 23,800. If it settles below USD 23,500, the next major support is near the USD 23,200 level.
Going lower, the next major support is near the USD 23,000 level, below which there is a risk of a larger decline towards the USD 22,500 and USD 22,250 levels.
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 19,142.57.
The projected upper bound is: 25,298.51.
The projected lower bound is: 21,281.76.
The projected closing price is: 23,290.13.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 58.0964. This is not an overbought or oversold reading. The last signal was a sell 3 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 73.20. 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 28 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 8 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -182.471 at 23,108.109. Volume was 81% below average (consolidating) and Bollinger Bands were 148% wider than normal.
Open High Low Close Volume 23,295.141 23,460.561 22,585.410 23,108.109 120,709
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 22,511.10 18,630.46 12,738.08 Volatility: 60 71 52 Volume: 918,379 826,810 655,574
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 81.4% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
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 8 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.