Bitcoin: USD/BTC (BTC=X) currently experiencing a negative price trend
This hasn’t been a good week for Bitcoin.
Following a sharp fall on Tuesday of last week, when the price of Bitcoin dropped from almost $9,700 to $8,500, the cryptocurrency has failed to recover ever since.
After falling to $8,000, the bulls tried to gain some ground, pushing the price to $8,400 per coin. But, by yesterday, the bears had had enough it seems, and an intense downward pressure on the price has confirmed that, for now, the bears are the ones in charge.
However, there is still some light at the end of the tunnel. Assuming there’s no funny business (some kind of manipulation or other strange event that’s, in fact, really not so strange in the world of crypto trading), this is a trend that can be reversed.
The Relative Strength Index (RSI) is at minimum levels, which means that sellers are currently willing to sell at meager prices even if this represents losses. Generally, this could lead to an increase in prices because those who shorted BTC would want to go long after buying the dip.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 9,310.80.
The projected upper bound is: 8,889.68.
The projected lower bound is: 7,230.71.
The projected closing price is: 8,060.19.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 57.5298. This is not an overbought or oversold reading. The last signal was a buy 4 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 28.88. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 3 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 -53. This is not a topping or bottoming area. The last signal was a buy 5 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 14 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -55.600 at 8,105.400. Volume was 71% below average (consolidating) and Bollinger Bands were 56% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 8,201.61 9,762.28 8,486.17
Volatility: 39 55 80
Volume: 85,941 80,331 84,568
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 4.5% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of BTC= (mildly bearish). Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 10 periods. Our momentum oscillator is currently indicating that BTC= is currently in an oversold condition.