Bitcoin: USD/BTC (BTC=X) holding the key $9,000 and $8,960 support levels
The currency has pulled in both bearish and bullish behavior from all angles, jumping beyond the $10,000-mark last weekend after a nasty period of trading in the mid-$7,000 range, to suddenly settling nearly $1,000 below its weekend high.
The currency has incurred other little surges here and there since falling back down to a “normal” or lesser level. For example, following its jump to $10,000 the currency initially fell back down to $9,000 about 24 hours later. It then jumped back up to $9,700 but later fell by another $300 and began trading in the $9,400 position.
The surge in bitcoin ultimately came by way of Chinese president Xi Jinping, who is widely “blamed” for praising blockchain enough these past several days to give bitcoin the shove it needed to rise back into more respectable trading levels. Jinping recently commented that blockchain technology has the power to revamp China’s infrastructure. He said that he is also looking to pave the way for blockchain innovation in the country, and a new law has moved forward allowing the development of the digital yuan.
This is all fine and dandy, but could a few simple (albeit positive) words about blockchain potentially improve bitcoin to such an extent? It seems unlikely. However, there’s another “culprit” behind bitcoin’s meteoric rise over the past few days.
That culprit is Bakkt, which is now breaking trading records for institutional players. In addition, the platform is paying the way for retailers such as Starbucks to accept crypto as a means of payment from customers seeking to use digital currency to get their fingers on goods and services.
What Could Happen Next?
There are also several cryptocurrency predictions running around as of late. Many have to do with whether bitcoin can surge further by the end of the year. One prediction has already failed to come true. One source was reporting that bitcoin could have potentially reached a whopping $16,000 by the end of October. Here we are in the first week of November and unfortunately, bitcoin is still stuck in the $9,000 range, so it seems like such a rise was not in the currency’s future (at least for now).
At the same time, we can be grateful that we’re out of the $7,000 range, a dismal position for any cryptocurrency trader considering just how much BTC and its altcoin cousins lost between late September and now. Bitcoin may not have broken any further price records just yet, but it is maintaining its resilience and showing itself to be what we always knew it was – a very powerful financial tool.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 10,056.30.
The projected lower bound is: 8,176.69.
The projected closing price is: 9,116.49.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 17 white candles and 33 black candles for a net of 16 black 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 55.1066. This is not an overbought or oversold reading. The last signal was a sell 5 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 56.33. 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 28 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 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 10 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -167.150 at 9,142.640. Volume was 67% below average (consolidating) and Bollinger Bands were 29% 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: 9,283.05 8,705.50 9,088.44
Volatility: 54 70 79
Volume: 72,081 79,397 85,046
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 0.6% 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 10 periods.
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