Bitcoin: USD/BTC (BTC=X) Dips Below $10,000 as BTC’s Bears Incur Significant Strength
At the time of writing, Bitcoin is trading down nearly 4% at its current price of $9,950, which is down significantly from its daily highs of nearly $10,400.
This bout of negative price action was first sparked last week when BTC sharply moved up to highs of $11,000 before being swiftly rejected and began plummeting towards its current price levels.
Importantly, this bearish price action signals that bulls, despite their attempt to push Bitcoin past $11,000, do not have significant strength at the moment, which could spell trouble for the cryptocurrency in the days and weeks ahead as it continues forming lower lows.
Josh Rager, a popular cryptocurrency analyst on Twitter, spoke about Bitcoin’s bearish price action in a recent tweet, explaining that it may target $8,975 next should the selling pressure continue to grow in strength.
“$BTC looks to be creating lower-highs and lower-lows on the daily chart. Marked are the open and support areas based on the weekly chart with previous support possibly flipping to resistance. If confirmed, watching the next weekly support at $8975 as a potential target,” he said.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 11,563.76.
The projected lower bound is: 7,888.23.
The projected closing price is: 9,726.00.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
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 33.6203. 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 42.77. 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 27 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 -107.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -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 sell 23 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -458.460 at 9,685.290. Volume was 74% below average (consolidating) and Bollinger Bands were 19% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 10,278.84 10,192.38 6,208.97
Volatility: 101 105 78
Volume: 89,753 91,911 79,532
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 56.0% above its 200-period moving average and is in an downward 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 bearish on BTC= and have had this outlook for the last 8 periods.