Bitcoin: USD/BTC (BTC=X) Faces Resistance Above $7,400 and Holds Bearishness

Bitcoin: USD/BTC (BTC=X) Faces Resistance Above $7,400 and Holds Bearishness

Bitcoin: USD/BTC (BTC=X) Faces Resistance Above $7,400 and Holds Bearishness

The journey of Bitcoin through this year 2019 has been extremely volatile; the coin started at $3,000 and reached a high of $13,800. Bitcoin’s price seems to be stuck in the $7,000 range for more than two weeks and the pattern formed since then has been indicating an incoming bearish move. More so, BTC/USD is in an ascending channel forming higher highs and higher lows. Therefore, since the price is at the end of the channel, it indicates that a breakout may likely come to play.

However, if the price of Bitcoin (BTC) declines below the ascending channel at this point, we can expect it to decline back into the lower boundary of the Bollinger bands. It is important to note that a few weeks ago, BTC/USD was bearish and not bullish. It is not a good sign for the cryptocurrency market. During that time, the price of Bitcoin (BTC) crashed hard. If the same were to happen again, we can expect the price of Bitcoin (BTC) to invalidate this ascending channel and fall down to the bottom of the previously broken Bollinger bands to potentially form a double bottom before any reversal.

Nevertheless, if the market drives below the $7,200 support, the BTC price may likely see support levels at $6,800, $6,600 and $6,400, bringing the price to a new low. Meanwhile, a strong buying pressure may take the price to $7,800 resistance. While trading at that level, a bullish continuation may likely reach the resistance levels of $8,000, $8,200 and $8,400 as the stochastic RSI is entering into the overbought zone.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 8,224.20.

The projected upper bound is: 8,353.89.

The projected lower bound is: 6,698.81.

The projected closing price is: 7,526.35.

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 20 white candles and 30 black candles for a net of 10 black candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 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 59.4004. This is not an overbought or oversold reading. The last signal was a sell 7 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 44.42. 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 11 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 66. This is not a topping or bottoming area. The last signal was a buy 12 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 9 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed up 64.270 at 7,532.580. Volume was 89% below average (consolidating) and Bollinger Bands were 44% narrower than normal.

Open     High      Low     Close     Volume___
7,530.7007,561.5007,415.5707,532.580 9,212
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,428.01 8,270.84 9,386.88
Volatility: 31 65 75
Volume: 90,589 80,166 85,574

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 19.8% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 bearish on BTC= and have had this outlook for the last 24 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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