Bitcoin: USD/BTC (BTC=X) Escalating tensions between the US and Iran have prompted a price surge
Escalating tensions between the US and Iran have prompted a price surge price for bitcoin and other cryptocurrencies, according to market analysts.
Bitcoin has risen in value by around $600 since the US assassination of Islamic Revolutionary Guard Corps Maj Gen Qassem Soleimani on 3 January, taking its price above $7,500 and bucking a downward trend that began before Christmas.
The cryptocurrency is notoriously volatile, making it difficult to attribute one single factor to major market movements, however geopolitical uncertainty is often cited as a contributing factor to price increases.
“Bitcoin, the world’s largest cryptocurrency by market capitalisation, jumped 5 per cent as news of the strikes broke around the world on Friday,” said Nigel Green, chief executive of financial consultancy firm deVere Group.
“Simultaneously, the price of gold – known as the ultimate safe-haven asset – also moved higher. The latest bitcoin price increase underscores a mounting consensus that bitcoin is becoming a flight-to-safety asset.”
The latest price increase shows no signs of slowing down, with near hour-on-hour rises over the last three days for bitcoin. Since the targeted killing of Soleimani, tensions between the US and Iran have also continued to grow, with Donald Trump threatening to launch attacks on cultural sites if Iran retaliates.
Other alternative cryptocurrencies, or altcoins, have also experienced significant price movements, including ripple (XRP) and bitcoin cash. Around $20 billion in value was added across all cryptocurrencies.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 8,756.20.
The projected lower bound is: 7,555.08.
The projected closing price is: 8,155.64.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 94.9667. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 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 68.62. 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 buy 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 305.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 19 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 585.670 at 8,156.850. Volume was 30% above average (neutral) and Bollinger Bands were 38% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,374.51 7,329.24 9,208.48
Volatility: 59 52 74
Volume: 88,135 88,472 86,071
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 11.4% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 2 periods.
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