Bitcoin: USD/BTC (BTC=X) Drops to $7,800 After Surging Yesterday
At the time of writing Bitcoin is trading down just over 1% at its current price of $7,830, down from 24-hour highs of nearly $8,300 that were set yesterday.
The lower-$8,000 region has proven to be an area of resistance for the cryptocurrency, as it has tried, and failed, on multiple occasions to stabilize above $8,000.
Despite this, it is important to note that each rejection that has come about as a result of BTC’s move into this region has been relatively small, signaling that Bitcoin’s upwards momentum is still alive and well, and likely to extend further in the near future.
While looking towards Bitcoin’s weekly candle close yesterday, The Crypto Dog, a popular analyst on Twitter, said that the strength and volume behind the recent rally validates its strength and long-term significance.
“Hell of a bullish weekly close on #Bitcoin with near record breaking volume, solidifying the strength and validity of this rally. $BTC / $USD is full. Weekly resistance: ~8215. Weekly support: ~7300,” he explained, adding in a later tweet that this past week BTC did incur record breaking volume on crypto exchange Bitmex.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 6,159.03.
The projected upper bound is: 8,772.58.
The projected lower bound is: 7,198.10.
The projected closing price is: 7,985.34.
A black body occurred (because prices closed lower 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 33 white candles and 17 black candles for a net of 16 white 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.
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 77.1638. This is not an overbought or oversold reading. The last signal was a sell 5 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 69.03. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 76. This is not a topping or bottoming area. The last signal was a sell 4 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 17 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -91.050 at 7,909.700. Volume was 59% below average (consolidating) and Bollinger Bands were 238% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,671.44 5,838.80 4,479.52
Volatility: 106 82 75
Volume: 101,244 80,661 77,253
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 76.6% above 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 BTC= (bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 18 periods.
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