Bitcoin: USD/BTC (BTC=X) Bottom in Sight

Bitcoin: USD/BTC (BTC=X) Bottom in Sight

Bitcoin: USD/BTC (BTC=X) Bottom in Sight

The Bitcoin drop has brought us near September 8 lows, which held the downtrend from extending. Therefore, we are expecting BTC/USD to find a reliable support near 6154-fiat while 6395-fiat is capping the correction as resistance. We are not hoping to enter a long position on lower lows formation but instead will wait for a confirmation of pennant formation to understand our long/short intraday positions.

Nevertheless, a close below 6141-fiat will have us enter a short towards 6000-fiat, our primary downside target while maintaining a stop loss just 4-pips above the entry point. An extended breakdown action could put price inside a free fall towards 5788-fiat on panic. But, it would also mark an ideal time for bulls to recapture attention and initiate a wild upside swing towards the descending trendline formation on daily charts.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 6,830.94.

The projected lower bound is: 5,835.03.

The projected closing price is: 6,332.99.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 black 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 Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 35.3788. This is not an overbought or oversold reading. The last signal was a sell 18 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 42.86. 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 64 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 -223.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed up 130.640 at 6,334.600. Volume was 65% below average (consolidating) and Bollinger Bands were 68% narrower than normal.

Open High Low Close Volume___
6,299.8006,341.8006,101.0006,334.600 29,810

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 6,515.17 6,617.44 7,251.77
Volatility: 40 48 89
Volume: 58,961 77,275 76,797

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.

Summary

FOREX BTC= is currently 12.6% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on BTC= and have had this outlook for the last 5 periods.

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