Bitcoin: USD/BTC (BTC=X) fundamentals fueling gains

Bitcoin: USD/BTC (BTC=X) fundamentals fueling gains

Bitcoin: USD/BTC (BTC=X) fundamentals fueling gains

Bitcoin cash has surged recently, climbing upwards of 100% since Monday morning and leaving other top cryptocurrencies in the dust.

This digital currency, a fork of the original bitcoin, skyrocketed to $324.57 today,CoinDesk price data reveals. 

At this point, it was up roughly 94.4% from its Monday low of $166.93 and 102% year-to-date, additional CoinDesk figures show.

In addition, the digital currency was trading at its highest point since roughly mid-November.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Fundamental Drivers

Some analysts pointed to fundamentals as fueling these gains, including a sharp increase in bitcoin cash futures trading on Kraken subsidiary Crypto Facilities, which was reported by CoinDesk earlier this week.

Another factor that was cited as potentially pushing bitcoin cash higher was the launch of the digital currency’s Simple Ledger Protocol, which allows developers to create new tokens that can be traded on bitcoin cash’s blockchain. 

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 4,069.07.

The projected upper bound is: 5,517.04.

The projected lower bound is: 4,579.04.

The projected closing price is: 5,048.04.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

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 82.3685. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 34 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 70.83. 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 39 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 178.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 14 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 4 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -261.400 at 5,019.100. Volume was 57% below average (consolidating) and Bollinger Bands were 194% wider than normal.

Open High Low Close Volume___
5,298.1505,344.9904,796.1105,019.100 29,582

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

Moving Averages: 10-period 50-period 200-period
Close: 4,354.55 3,979.17 4,614.80
Volatility: 106 69 69
Volume: 71,251 65,917 73,188

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 8.8% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 5 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.

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