Bitcoin: USD/BTC (BTC=X) declined sharply and broke an important support
Over the past 24-hours, Bitcoin (BTC) price suffered another bear blow forcing the price back below $6500. Bitcoin is currently trading around $6487 at the time of writing. Its total market capitalization plunges from $122.8B to $111.8B and holding a -7.68% loss in a 24-hour period, bringing a new weekly low. The sharp decline could be attributed to the news that the U.S. Securities and Exchange Commission (SEC) delayed its decision on the listing and trading of a Bitcoin exchange-traded fund (ETF) to the end of September.
Technically, the trend remains bullish as long as the price trades above the July 12 low of $6073. However, because the current selling pressure, I prefer to be on the sideline waiting if the price can take out the July 12 support. If the price successfully breaches this support, then the trend might turn bearish with traders targeting the next support level located at the June 29 low of $5747.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 7,318.71.
The projected lower bound is: 5,604.17.
The projected closing price is: 6,461.44.
During the past 10 bars, there have been 1 white candles and 0 black candles for a net of 1 white candles. During the past 50 bars, there have been 2 white candles and 0 black candles for a net of 2 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 28 falling windows in the last 50 candles–this makes the current falling window even more bearish.
A gravestone doji occurred. This often signifies a top (the longer the upper shadow, the more bearish the signal).
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 5.7115. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 6 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 36.82. 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 sell 8 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 -193.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 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 4 period(s) ago.
Rex Takasugi – TD Profile
NYSE BitcoinIndx closed down -632.658 at 6,478.711. Volume was -0% below average (neutral) and Bollinger Bands were 8% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,537.06 6,979.21 9,320.04
Volatility: 67 80 124
Volume: 0 0 0
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.
NYSE BitcoinIndx gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NYSE BitcoinIndx is currently 30.5% below 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 very strong flows of volume into .NYXBT (bullish). Our trend forecasting oscillators are currently bullish on .NYXBT and have had this outlook for the last 23 periods.
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