Bitcoin: USD/BTC (BTC=X) approaching the critical $6,800 level of resistance after surging by more than 15% in the past 24 hours
Bitcoin is approaching the critical $6,800 level of resistance after surging by more than 15% in the past 24 hours.
The tremendous move to the upside will come as a surprise to the majority of Bitcoin traders, many of whom have been suggesting that a continued correction to the $3,000 region was on the cards.
Bitcoin isn’t out of the woods just yet, it needs to demonstrate strength by closing this evening’s daily candle above $6,800, which became a point of rejection on Friday.
After failing to achieve a new high on Friday, Bitcoin proceeded to plunge by around 20% to the $5,700 before enjoying a period of consolidation.
It’s worth noting that the daily MACD indicator has printed a bullish cross for the first time since it crossed to the downside on 15th February, which marked the local top at $10,500.
A clear breakout above $6,800 would bring price targets of $7,400 and $7,880 into the picture, although Bitcoin will also likely test the daily 200MA which is at $8,330.
Another rejection from this point would be a miserable turn of events for Bitcoin bulls as it indicates that an extension of this short-term bear market is certainly on the cards.
Bearish momentum in light of a rejection from resistance could well result in an initial move to the $5,700 region before it tests this month’s lows of $3,600 and $4,000.
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 7,576.54.
The projected upper bound is: 7,975.56.
The projected lower bound is: 5,237.25.
The projected closing price is: 6,606.40.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 77.8049. This is not an overbought or oversold reading. The last signal was a buy 12 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 46.22. 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 buy 6 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 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 4 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -96.020 at 6,655.920. Volume was 10% below average (neutral) and Bollinger Bands were 125% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 6,016.05 8,369.09 8,348.60
Volatility: 174 129 81
Volume: 561,939 387,317 164,002
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 20.3% below 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 33 periods.