Bitcoin: USD/BTC (BTC=X) Chinese President Xi Jinping calling on his country to advance development in blockchain technology

Bitcoin: USD/BTC (BTC=X) Chinese President Xi Jinping calling on his country to advance development in blockchain technology

Bitcoin: USD/BTC (BTC=X) Chinese President Xi Jinping calling on his country to advance development in blockchain technology

Bitcoin’s price rose sharply over the weekend, recovering from a plunge just days earlier, after Chinese President Xi Jinping gave a speech embracing blockchain technology and calling on his country to advance development in the field.

The value of the world’s best-known cryptocurrency jumped as high as $10,332 on Saturday, according to data from industry website CoinDesk. The price has since eased to around $9,370 as of Monday morning, up about 1% on the day.

The virtual currency’s jump came as China’s leader sang the praises of blockchain, the technology that underpins cryptocurrencies like bitcoin. According to state media, Xi said Friday that China has a strong foundation and should look to take a leading position in the sector.

He reportedly said China should “seize the opportunity” offered by blockchain, adding the technology could benefit a range of industries including finance, education and health care. A blockchain is a digital ledger that maintains a record of transactions or other data across a network of computers.

Beijing has taken a tough stance on cryptocurrencies, banning a fundraising exercise known as an initial coin offering and forcing local trading platforms to shut down in 2017.

China’s central bank, the People’s Bank of China (PBOC), has been working on its own digital currency. It has accelerated its development in recent months as Facebook and a handful of other companies look to shake up the global financial services industry with a cryptocurrency called libra.

The PBOC set up a research team back in 2014 to explore the use of virtual currencies to reduce the costs involved in circulating traditional paper-based money. A senior official at the bank said last month that the planned digital token would bear some similarities to libra.

Libra has come under intense scrutiny from regulators around the world, who worry Facebook’s proposed digital asset would disrupt the financial system and could be open to risks like money laundering and terrorist financing.

Lawmakers last week grilled Facebook CEO Mark Zuckerberg over the project. Zuckerberg at one point said the social network would not take part in launching libra “until U.S. regulators approve.”

Bitcoin has been on the rise this year and is currently up nearly 150% year-to-date. That marks a significant turnaround from last year, when the digital coin tanked to as low as $3,122 after hitting an all-time high of close to $20,000 in December 2017.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 10,193.81.

The projected lower bound is: 8,303.80.

The projected closing price is: 9,248.81.

Candlesticks

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 18 white candles and 32 black candles for a net of 14 black 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 82.3400. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 59.98. 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 22 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 103.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 4 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 4 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -165.340 at 9,268.300. Volume was 70% below average (consolidating) and Bollinger Bands were 9% wider than normal.

Open     High      Low     Close     Volume___
9,458.0009,512.0009,075.5609,268.300 24,847
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 8,553.18 8,828.53 8,966.17
Volatility: 110 70 79
Volume: 75,948 79,985 85,159

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 3.4% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 4 periods.

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