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Bitcoin: USD/BTC (BTC=X) Bulls Targeting Key Resistance At $7,800

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Bitcoin: USD/BTC (BTC=X) Bulls Targeting Key Resistance At $7,800

Bitcoin is on a sharp rise in 2020 with price breaching $7,500 USD. Bulls are regaining strength in the market with a third straight green candle on the daily charts setting bullish indicators that signal a possible test of the $7,800 resistance level. A call for entry?

Bitcoin (BTC) is finally taking shape as price shortly spiked above $7,500 USD in the past 24 hours. Following the $400 spike on Jan. 2, from $6,900 to over $7,300 USD (a spike heavily associated with the Iran-US tensions), BTC is showing prospects  of a possible bullish momentum as price set higher lows.

Despite still being in a downtrend from the yearly high set in June 2019 at $13,900 USD, BTC/USD recording higher lows signals an upcoming reversal. The price has narrowed through the bearish channel on the higher timeframe channels and a break above the resistance provides a perfect time of entry.

Looking at the daily charts, a breakout above the wedge channel and major resistance looks set in stone as bulls gain strength in the market. Make no mistake though, the price is still in an extended downtrend since the Xi pump in late October. However, a period of sideways trading since late November and a rectangular formation on the chart signals a major breakout ensues on BTC/USD.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 8,082.40.

The projected lower bound is: 6,959.85.

The projected closing price is: 7,521.12.

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 24 white candles and 26 black candles for a net of 2 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).

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 89.3629. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 14 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 57.04. 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 buy 19 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 153.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 buy 18 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed up 111.840 at 7,541.500. Volume was 53% below average (consolidating) and Bollinger Bands were 68% narrower than normal.

Open     High      Low     Close     Volume___
7,461.5007,583.8007,211.5007,541.500 39,053
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,287.04 7,329.86 9,217.25
Volatility: 42 49 73
Volume: 79,767 86,539 85,668

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 18.2% 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 1 periods.

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