Bitcoin: USD/BTC (BTC=X) could dip towards the $6,340 or $6,320
Yesterday, we saw a sharp upward move above the $6,700 level in bitcoin price against the US Dollar. The BTC/USD pair traded above the $6,800 level and topped at $6,829. Later, there was a major downside move and the price reversed most gains below $6,500. There was even a push below the $6,400 support and a low was formed at $6,349. Later, the price started consolidating and moved above the $6,400 level.
It tested the 23.6% Fib retracement level of the recent decline from the $6,829 high to $6,349 low. However, buyers failed to clear the $6,500 resistance level. At the outset, there is a short-term ascending channel in place with support at $6,400 on the hourly chart of the BTC/USD pair. The pair seems to be struggling to break the $6,500 and $6,520 resistances. Therefore, there could be a downside correction below the channel support at $6,400. The price may test the $6,340 or $6,320 support levels before buyers take back control. On the other hand, a break above the $6,500 and $6,520 resistance will most likely call for more gains.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 6,706.99.
The projected upper bound is: 6,908.54.
The projected lower bound is: 5,983.41.
The projected closing price is: 6,445.98.
A white body occurred (because prices closed higher 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 25 white candles and 25 black candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
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 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 53.7035. This is not an overbought or oversold reading. The last signal was a sell 23 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 48.41. 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 69 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 -4. This is not a topping or bottoming area. The last signal was a buy 3 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 6 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 11.490 at 6,458.450. Volume was 82% below average (consolidating) and Bollinger Bands were 66% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 6,431.35 6,580.52 7,227.89
Volatility: 37 45 88
Volume: 57,866 74,926 76,723
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 10.6% 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 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 10 periods.