Home Crypto Bitcoin Bitcoin: USD/BTC (BTC=X) Is Being Heavily Sold, but That Might Not Be...

Bitcoin: USD/BTC (BTC=X) Is Being Heavily Sold, but That Might Not Be a Bad Thing

36
0

Bitcoin: USD/BTC (BTC=X) Is Being Heavily Sold, but That Might Not Be a Bad Thing

As we all remember, bitcoin has had a very mixed two months in both October and November. Things ultimately started in late September when Bakkt – the institutional crypto trading platform owned and governed by the Intercontinental Exchange (ICE) – made its official debut on September 23. Despite nearly a year of hype and hoopla, this failed to make any serious headway in the crypto space.

The platform experienced a very dismal opening weekend, trading less than 75 bitcoin futures contracts within the first two days of business, and as a result, bitcoin’s price suffered heavily, dropping from about $9,500 to just over $8,100 in a matter of minutes.

Things didn’t quite stop there, however, as in October, news of Mark Zuckerberg’s testimony regarding Libra before a Senate panel proved too much for many of the crypto world’s top enthusiasts. Bitcoin then took another hit, dropping a further $800 in just a few days and falling to the $7,400 range.

From there, a positive turn began to make an appearance. Bitcoin experienced solid gains after Chinese president Xi Jinping commented that blockchain was a powerful technology capable of revamping the country’s infrastructure and economy. Bitcoin exploded back into the mid-$8,000 region from there, but it later jumped back to $10,000 (briefly) after Bakkt experienced a sudden surge of business that saw it trading millions in bitcoin contracts.

Bitcoin eventually settled back into the mid-$9,000 range, where it stayed for some time, only now, it has incurred several additional losses which have brought it back down to $7,300 at the time of writing. While this is $100 higher than where it stood over the holiday weekend, it’s still quite low by comparison.

Technical charts suggest that bitcoin is still being sold off in droves, and many enthusiasts are running out of patience as of late when it comes to holding their crypto. Chances are, they want to cut their losses short and sell off their stashes before any more bearish behavior can take place, but the charts do suggest that we’re likely to see even more trading as bitcoin continues to incur losses, which could ultimately reverse the bear process by providing bitcoin with further activity.

China Is Making Things Hard

Dan Matuszewski – a principle at CMS Holdings – also suggests that perhaps business in China is potentially affecting the cryptocurrency as well. He states:

The big narrative is around what’s going on China. What you started to see is China cracking down on a lot of the elements of crypto that have been operating inside the country.

Despite everything, bitcoin is nearly $200 higher than its lowest Monday point of just over $7,160.

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 8,265.21.

The projected upper bound is: 8,069.33.

The projected lower bound is: 6,419.65.

The projected closing price is: 7,244.49.

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 27.1790. This is not an overbought or oversold reading. The last signal was a sell 3 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 35.54. 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 7 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 buy 8 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 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -36.910 at 7,262.590. Volume was 90% below average (consolidating) and Bollinger Bands were 6% narrower than normal.

Open     High      Low     Close     Volume___
7,334.0007,378.5007,159.0407,262.590 7,695
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,400.43 8,312.42 9,397.34
Volatility: 47 64 76
Volume: 86,456 77,906 85,601

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 22.7% 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 20 periods.

Previous articleUK FTSE 100 (.FTSE) plunges lower after Donald Trump threatened to slap hefty tariffs on France and the EU
Next article“Proper US-China Trade Deal More Important Than Timing”
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.