Bitcoin: USD/BTC (BTC=X) could enjoy additional gains after breaking through $4,000
Bitcoin could enjoy additional gains after breaking through $4,000, according to sentiment data and technical analysis.
The cryptocurrency reached as much as $4,063.95 around 12:30 EST on Sunday, January 6, according to CoinDesk bitcoin price data.
Since then, bitcoin prices have largely fluctuated between $3,950 and $4,050, additional CoinDesk figures show.
Bitcoin is “showing multiple bullish signs” that could cause the digital currency to retest “the 2018 trend line that currently is at the $4500 level,” said Jon Pearlstone, publisher of the newsletter CryptoPatterns.
“Any strength on a test of the trendline would likely lead to a retest of key resistance at the $6000, a level that held for months,” he added.
Mati Greenspan, senior market analyst for social trading platform eToro, offered a less optimistic assessment.
“At the moment Bitcoin is consolidating it’s gains above $4,000,” he noted.
However, “this is only the half way mark within the broader range between $3,000 and $5,000.”
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 4,532.75.
The projected lower bound is: 3,440.14.
The projected closing price is: 3,986.45.
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 23 white candles and 27 black candles for a net of 4 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.
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 62.4830. This is not an overbought or oversold reading. The last signal was a buy 10 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 54.45. 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 145.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.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 39 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -7.020 at 4,001.980. Volume was 85% below average (consolidating) and Bollinger Bands were 61% 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: 3,875.49 3,795.31 5,894.09
Volatility: 51 90 66
Volume: 64,317 90,763 82,940
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 32.1% below its 200-period moving average and is in an upward trend. Volatility is high 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 19 periods.