Bitcoin: USD/BTC (BTC=X) Faces Growing Resistance at Critical 4,000 Level

Bitcoin: USD/BTC (BTC=X) Faces Growing Resistance at Critical 4,000 Level

Bitcoin: USD/BTC (BTC=X) Faces Growing Resistance at Critical 4,000 Level

After facing increased levels of selling pressure yesterday, Bitcoin as been able to maintain above $3,900, which is increasingly becoming a level of support for the cryptocurrency. Despite this, $4,000 still remains a key level of resistance for BTC, and the crypto’s short positions are rapidly climbing as it continues to fail to break above this price level.

Analysts continue to watch Bitcoin’s key support levels as the cryptocurrency fails to garner any significant amounts of buying pressure to propel it above $4,000, which may ultimately lead it to drop back towards its strong support levels in the low-$3,000 region.

As the week drags on and Bitcoin reacts to these aforementioned levels of support and resistance, traders and analysts alike will garner a greater understanding of where the cryptocurrency, and the overall markets, are heading next.

Overall, the bias in prices is: Sideways.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 3,858.93.

The projected upper bound is: 4,151.77.

The projected lower bound is: 3,588.48.

The projected closing price is: 3,870.12.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

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).

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 50.5095. This is not an overbought or oversold reading. The last signal was a buy 12 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 52.01. 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 17 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 29. This is not a topping or bottoming area. The last signal was a sell 2 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -97.590 at 3,864.310. Volume was 82% below average (consolidating) and Bollinger Bands were 50% narrower than normal.

Open High Low Close Volume___
3,864.2003,972.0003,849.7903,864.310 13,209

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 3,886.53 3,690.89 4,896.64
Volatility: 53 48 64
Volume: 55,273 66,775 74,909

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 21.1% 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 30 periods.

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