Bitcoin: USD/BTC (BTC=X) Fails to Break Above $5,350
At the time of writing, Bitcoin is trading down over 4% at its current price of $5,060 and is currently trading near its daily lows.
Today’s drop was brought about yesterday after Bitcoin swiftly surged from roughly $5,300 to $5,350, where it faced significant levels of selling pressure that sparked the sell-off that sent the cryptocurrency down to its current price levels.
Importantly, BTC’s downwards descent was halted when it reached the $5,000 region, signaling that a significant amount of support exists at this price level.
Shayne ‘Jack’ Heffernan, an economist who primarily focuses his attention on cryptocurrencies, discussed where BTC’s next levels of support exist in a recent tweet, noting that a drop below $5,000 will likely lead the crypto down towards $4,780.
“Coinbase high was $5489. Don’t expect a pullback to $4000. Too deep. Support: 5000, 4780-4680, 4550 (200DMA), 4400, 4200. Resistance: 5350, 5500, 5750 (weak), 6000, 6400,” he explained.
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 4,332.90.
The projected upper bound is: 5,530.68.
The projected lower bound is: 4,553.98.
The projected closing price is: 5,042.33.
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 30 white candles and 20 black candles for a net of 10 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 40.5255. This is not an overbought or oversold reading. The last signal was a sell 8 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 61.97. 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 1 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 25. This is not a topping or bottoming area. The last signal was a sell 5 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 12 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -32.770 at 5,019.920. Volume was 50% below average (consolidating) and Bollinger Bands were 240% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 5,122.38 4,198.62 4,559.08
Volatility: 83 70 69
Volume: 89,129 68,842 73,551
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 10.1% 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 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 13 periods.