Bitcoin: USD/BTC (BTC=X) extended the best one-month rally since before the token’s historic surge in 2017

Bitcoin: USD/BTC (BTC=X) extended the best one-month rally since before the token’s historic surge in 2017

Bitcoin: USD/BTC (BTC=X) extended the best one-month rally since before the token’s historic surge in 2017

Bitcoin jumped as much as 10 per cent since Friday to almost breach $US9,000 as it extended the best one-month rally since before the token’s historic surge in 2017.

The largest cryptocurrency climbed to be trading at $US8,785 at 1.15pm AEST on Tuesday, according to Coindesk. Rival coins were also stronger with Litecoin up more than 12 per cent while Ether, the second largest digital token, rose 6.8 per cent.

Crypto proponents are taking encouragement from a string of recent headlines showing greater interest in the space from mainstream firms. AT&T said last week it will permit customers to pay bills with Bitcoin or Bitcoin cash. That followed news that Fidelity Investments was finalising plans to buy and sell the digital asset for institutional customers.

“Easier to spend means a greater use case,” said Mati Greenspan, senior market analyst at trading platform eToro in Tel Aviv. Greenspan said the overall customer base could reach “critical mass, and the technology goes from underground to mainstream.”

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 6,503.60.

The projected upper bound is: 9,554.42.

The projected lower bound is: 8,016.73.

The projected closing price is: 8,785.57.

Candlesticks

A black body occurred (because prices closed lower than they opened).
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 32 white candles and 18 black candles for a net of 14 white candles.

A bearish harami occurred (where the current small black body is contained within an unusually large white body). During an uptrend (which appears to be the case with FOREX BTC=) this pattern implies an end to the rally as the bulls appear to have exhausted themselves.

During a downtrend the bearish harami pattern is bullish as the bulls appear to be gaining strength as the bears weaken.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 81.7769. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 73.37. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 6 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 213.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -37.020 at 8,716.360. Volume was 55% below average (consolidating) and Bollinger Bands were 104% wider than normal.

Open High Low Close Volume___
8,748.2508,870.6008,688.3008,716.360 33,621

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 8,138.80 6,280.16 4,542.89
Volatility: 73 69 76
Volume: 92,544 80,515 78,491

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.

Summary

FOREX BTC= is currently 91.9% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into BTC= (mildly bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 25 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.

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