Bitcoin: USD/BTC (BTC=X) Breaks Below $4,000 and is Likely to Drop Further

Bitcoin: USD/BTC (BTC=X) Breaks Below $4,000 and is Likely to Drop Further

Bitcoin: USD/BTC (BTC=X) Breaks Below $4,000 and is Likely to Drop Further

At the time of writing, Bitcoin is trading down just over 1% at its current price of $3,970 and is down from its weekly highs of nearly $4,100. Because bulls still do not have enough buying pressure to push the crypto above the low-$4,000 region, it is likely that this price level will persist as resistance for the foreseeable future.

Jani Ziedins of the CrackedMarket blog discussed Bitcoin’s recent drop below $4,000 while speaking to MarketWatch, explaining that he expects the cryptocurrency to see further downside in the near future.

“Bitcoin cannot escape $4k resistance even after poking its head above it the last week. If dip buyers have not come to the rescue yet, it means they are not coming. An investment that refuses to go up will eventually go down. Bitcoin owners need to be prepared for more near-term weakness,” he said.

Ledger Status, a popular cryptocurrency analyst on Twitter, also shared his thoughts recently, explaining that the crypto has multiple strong levels of resistance existing just above its current price.

“Tricky spot for $BTC. Under the bband midline again but above a congestion area. Several support areas below, heavy resistance above. Seems a good way to lose money over if leveraged,” he noted.

Although Bitcoin has found support around $3,900 so far, if its bulls are unable to push its price back above $4,000 in the near-future, significantly further losses could be in store, and a drop back to its 2018 lows in the low-$3,000 region may be inevitable.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 4,315.09.

The projected lower bound is: 3,675.68.

The projected closing price is: 3,995.39.

Candlesticks

A white body occurred (because prices closed higher 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 26 white candles and 24 black candles for a net of 2 white candles.

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 30.8262. This is not an overbought or oversold reading. The last signal was a buy 26 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 52.71. 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 31 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 -12. This is not a topping or bottoming area. The last signal was a sell 6 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 4 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed up 72.290 at 3,984.150. Volume was 61% below average (consolidating) and Bollinger Bands were 47% narrower than normal.

Open High Low Close Volume___
3,914.8404,061.2003,902.0003,984.150 26,380

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

Moving Averages: 10-period 50-period 200-period
Close: 3,994.11 3,835.67 4,692.78
Volatility: 45 53 64
Volume: 60,271 65,275 73,522

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 15.1% below its 200-period moving average and is in an downward trend. Volatility is low 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 2 periods.

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