Bitcoin: USD/BTC (BTC=X) bears have gained an upper hand in the last 24 hours
Bitcoin is down again, but some observers believe the losses could be reversed after a U.S. interest rate cut expected Wednesday.
The leading cryptocurrency by market value fell to lows below $10,100 yesterday, marking a downside break of the narrowing price range created near $10,300 in the three days to Sept. 15.
As of writing, BTC is changing hands at $10,150 on Bitstamp, representing a 1.4 percent drop on a 24-hour basis.
So, the bears have gained an upper hand in the last 24 hours despite record high miner confidence, and a deeper drop may unfold in the next 24 hours.
The decline, however, could end up trapping sellers on the wrong side of the market, according to some observers, who expect BTC to benefit from an impending 25 basis point U.S. rate cut on Wednesday.
For instance, Nigel Green, founder and CEO of a global financial advisory giant deVere Group, believes the cryptocurrency will pick up a strong bid in response to the Federal Reserve’s rate cut, as the reduction in borrowing costs will lower the yield (return) on the U.S. dollar.
Meanwhile, Anthony Pompliano, founder and partner at Morgan Creek Digital Assets, tweeted in August that BTC could fly high if the Fed rate cuts are followed by a government buying program (quantitative easing).
Overall, the bias in prices is: Sideways.
The projected upper bound is: 11,166.68.
The projected lower bound is: 9,351.58.
The projected closing price is: 10,259.13.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 43.3862. This is not an overbought or oversold reading. The last signal was a buy 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 49.04. 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 83 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 -57. This is not a topping or bottoming area. The last signal was a sell 12 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 15 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -6.750 at 10,245.000. Volume was 69% below average (consolidating) and Bollinger Bands were 56% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 10,248.04 10,487.62 8,096.07
Volatility: 26 55 78
Volume: 71,639 82,752 82,808
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 26.5% 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 volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 3 periods.