Bitcoin: USD/BTC (BTC=X) jumped above $7,400 confirming a bullish breakout

Bitcoin: USD/BTC (BTC=X) jumped above $7,400 confirming a bullish breakout

Bitcoin: USD/BTC (BTC=X) jumped above $7,400 confirming a bullish breakout

Bitcoin eked out the biggest single-day gain in four weeks on Wednesday, confirming a short-term price breakout and opening doors for a test of resistance at $7,800. 

The number one cryptocurrency printed a UTC close at $7,528 on Bitstamp, representing a 5.15 percent gain on the daily opening price of $7,168. That’s the biggest single-day price rise since Oct. 26. On that day, BTC rose by 6.81 percent and printed highs above $10,300.

Wednesday’s gain looks more impressive if we take into account the rejection of lower prices seen during the European trading hours. Prices had dropped to $6,850, but were quickly reversed and the cryptocurrency ended the day on an optimistic note, validating the seller exhaustion signaled by key technical indicators. 

More importantly, BTC activated twin bullish cues on the intraday charts with a convincing move above $7,400 and could continue to draw bids in the short-term. 

At press time, BTC is changing hands at $7,480, having hit a high of $7,670 during the U.S. trading hours on Wednesday. 

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 8,280.19.

The projected upper bound is: 8,312.69.

The projected lower bound is: 6,657.21.

The projected closing price is: 7,484.95.

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.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 89.2915. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 30 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 38.73. 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 2 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 -28. This is not a topping or bottoming area. The last signal was a buy 3 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 sell 21 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -87.400 at 7,506.400. Volume was 79% below average (consolidating) and Bollinger Bands were 29% wider than normal.

Open     High      Low     Close     Volume___
7,563.7507,599.9007,278.4407,506.400 16,732
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,430.05 8,401.66 9,402.10
Volatility: 63 65 77
Volume: 75,462 76,714 85,939

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 20.2% below its 200-period moving average and is in an downward 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 bearish on BTC= and have had this outlook for the last 15 periods.

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