Bitcoin: USD/BTC (BTC=X) Down 26.6% in 7 Days
Since July 10, the price of Bitcoin (BTC) has fallen from $13,200 to $9,684, with major cryptocurrency exchanges, including Coinbase, recording a 26.6% drop within a period of seven days. The recent pullback of Bitcoin is widely believed to be a technical factor that was pushed by sellers who took control of the market once the dominant crypto asset went below key support levels at $11,000 and $10,700.
Alex Krüger, a global markets analyst, hinted that the criticism of Bitcoin by United States President Donald Trump and Treasury Secretary Steve Mnuchin could have contributed to the fall:
“When the U.S. government attacks bitcoin directly, saying it’s exploited to support billions of dollars of illicit activity, based on thin air, and how they are concerned about its speculative nature, and the crypto echo chamber roars ‘bullish,’ it probably is a good time to short. There is nothing bullish in antagonizing with the largest gorilla in the room. Most U.S. politicians unfortunately seem to be convinced crypto is the realm of money laundering and drug trafficking. This needs to change. I bet people use Paypal or Venmo more than bitcoin to pay for illicit activities. Also bet most criminals don’t even know what monero is, yet they all heard about the dollar. Unfortunately, perception trumps facts.”
The change in sentiment around the crypto market following the remarks of President Trump and Secretary Mnuchin, as well as bearish technical indicators, are considered to be the major factors behind Bitcoin’s most recent correction.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 11,199.43.
The projected lower bound is: 7,565.18.
The projected closing price is: 9,382.30.
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.
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 18.7590. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 3 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 40.64. 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 20 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 -202.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 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 16 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -242.620 at 9,356.130. Volume was 64% below average (consolidating) and Bollinger Bands were 29% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 11,077.56 9,912.59 5,977.48
Volatility: 111 106 77
Volume: 91,601 91,516 78,569
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 56.5% 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 1 periods.