Bitcoin: USD/BTC (BTC=X) Climbs Higher

Bitcoin: USD/BTC (BTC=X) Climbs Higher

Bitcoin: USD/BTC (BTC=X) Climbs Higher

Bitcoin climbed to the highest since November after breaching the $8,000 price level.

Concerns about an escalation in the conflict between the U.S. and Iran are seen as contributing to the rally in Bitcoin, which is not managed by a government.

“Bitcoin and gold are well supported due to rising tensions between the U.S. and Iran,” said Emmanuel Goh, who runs crypto derivatives tracker Skew. “Professional investors are also back from the Christmas break and starting to deploy capital — this is called the January effect in the stock market.”

The world’s largest cryptocurrency rose as much as 7.3% to $8,128 in New York trading, the biggest one-day increase since Dec. 18.

Bloomberg Intelligence strategist Mike McGlone expects Bitcoin to draw support this year because of its fixed supply and greater adoption.

“Volatility should continue to decline, as we expect $6,000 to mark this year’s key support and $10,000 to hold resistance,” McGlone wrote in a note Tuesday.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 8,487.98.

The projected lower bound is: 7,329.48.

The projected closing price is: 7,908.73.

Candlesticks

A black body occurred (because prices closed lower 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 24 white candles and 26 black candles for a net of 2 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 70.6064. This is not an overbought or oversold reading. The last signal was a sell 0 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 62.89. 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 142.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 buy 21 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -93.690 at 7,913.100. Volume was 51% below average (consolidating) and Bollinger Bands were 22% narrower than normal.

Open     High      Low     Close     Volume___
8,004.0008,108.2507,801.2107,913.100 40,775
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,491.76 7,320.32 9,178.73
Volatility: 52 50 72
Volume: 88,737 89,682 86,135

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 13.8% below its 200-period moving average and is in an upward 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 moderate flows of volume into BTC= (mildly bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 4 periods.

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