Bitcoin: USD/BTC (BTC=X) Bulls Could Push Bitcoin to $5,000 if Support Continues to Hold
In the long-term, analysts have expressed that Bitcoin is likely caught in a relatively large trading range between $3,000 and $5,000. Within this, BTC’s recent price action signals that it is likely caught in a much tighter trading range between $3,550 and $4,200.
Mati Greenspan, the senior market analyst at eToro, discussed the cryptocurrency’s new trading ranges in a market update from earlier this month, saying:
“As we’ve been discussing since mid-November, the current range is from $3,000 to $5,000… It seems now, that bitcoin has opened a new mini-range within that from $3,550 to approximately $4,200… Movements within a range can sometimes be sudden like we saw yesterday, but unless there’s a breakout of the key levels there really isn’t much to write home about.”
While speaking to Forbes, Jon Pearlstone, the publisher of the CryptoPatterns newsletter, said that as long as bulls are able to maintain the $3,500 region as a level of support, Bitcoin could surge to $5,000 as the result of an inverse head and shoulders pattern that has been forming since November of 2018.
“Since mid-november [sic], bitcoin has built a clearly defined bullish inverse head and shoulders pattern with a target in the $5000 range… The most recent move back down to retest key support at $3500 was expected as part of this pattern, and the current consolidation continues to offer an edge for the bulls as long as support holds above $3500,” Pearlstone explained.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 4,070.98.
The projected lower bound is: 3,152.23.
The projected closing price is: 3,611.60.
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 23 white candles and 27 black candles for a net of 4 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 43.1640. This is not an overbought or oversold reading. The last signal was a buy 2 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 44.54. 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 32 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 -51. This is not a topping or bottoming area. The last signal was a buy 4 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 sell 7 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -1.340 at 3,622.770. Volume was 67% below average (consolidating) and Bollinger Bands were 49% narrower 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: 3,650.24 3,708.79 5,766.00
Volatility: 66 79 66
Volume: 73,187 87,097 82,129
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 37.2% below its 200-period moving average and is in an downward 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 bearish on BTC= and have had this outlook for the last 3 periods.
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