Bitcoin: USD/BTC (BTC=X) Is $7,900 USD a possibility?

Bitcoin: USD/BTC (BTC=X) Is $7,900 USD a possibility?

Bitcoin: USD/BTC (BTC=X) Is $7,900 USD a possibility?

As we enter into the month of December, the last month of the decade that blessed us with Bitcoin and blockchain technology growth. However, since hitting heights of $19,800 USD in late 2017, the price of the pioneer crypto has been on a wild ride, dropping to $3,500 in a year before soaring to over $13,000 USD in June this year. Currently, the price of BTC/USD oscillates around $7,400 USD signaling a possible drop towards the $7,000 region if the resistance remains unbroken in the coming days.

Is $7,900 USD a possibility?

BTC/USD bounced off the resistance level at $7,311 on Nov 30, to trade at a current price of $7,449 USD, as at the time of writing. As a Head and Shoulders pattern formed on the lower timeframes, bulls pushed the narrative to set the price back up above the resistance level at $7,900. Following the failure of completing the pattern, a bearish sentiment took over the field but bulls have struggled to take over from the bears.

Can bears hold out?

Despite the continued optimism on BTC since the erosion of the Xi profits, the market looks bleak at current prices and bulls need to come in handy in the coming days or the market may witness a selloff towards the $6K region.

The next candle will be key in determining if bulls or bears are in full control, a cross below the support level at $7,300 will signal a bearish move and a shorting opportunity towards the $6,500 USD support level.

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 8,284.11.

The projected upper bound is: 8,045.15.

The projected lower bound is: 6,386.26.

The projected closing price is: 7,215.71.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 17 white candles and 33 black candles for a net of 16 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 49.5184. This is not an overbought or oversold reading. The last signal was a sell 1 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 35.27. 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 5 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 -48. This is not a topping or bottoming area. The last signal was a buy 6 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 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -135.720 at 7,236.280. Volume was 39% below average (neutral) and Bollinger Bands were 11% wider than normal.

Open     High      Low     Close     Volume___
7,324.5007,454.5807,069.1907,236.280 48,632
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,359.99 8,349.61 9,396.09
Volatility: 51 65 77
Volume: 87,776 77,911 85,897

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 23.0% 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 18 periods.

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