Bitcoin: USD/BTC (BTC=X) major bullish trend line in place

Bitcoin: USD/BTC (BTC=X) major bullish trend line in place

Bitcoin: USD/BTC (BTC=X) major bullish trend line in place

Yesterday, bitcoin price started a downside correction after trading as high as $6,472 against the US Dollar. The BTC/USD pair declined below the $6,440 and $6,420 support levels. It also broke the 50% Fib retracement level of the last leg from the $6,319 low to $6,472 high. However, the price is still trading well above the $6,375 support and the 100 hourly simple moving average.

The price recently tested the $6,370-6,375 area, which acted as a support. Besides, the 61.8% Fib retracement level of the last leg from the $6,319 low to $6,472 high also provided support. More importantly, there is a major bullish trend line in place with support at $6,390 on the hourly chart of the BTC/USD pair. The pair is currently placed nicely above the $6,375 support and the 100 hourly simple moving average. On the upside, there is a connecting bearish trend line with resistance at $6,420. It seems like the price could dip towards $6,375 before it starts a fresh upward move above $6,420 and $6,440.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 6,756.60.

The projected lower bound is: 6,121.40.

The projected closing price is: 6,439.00.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 59.3525. This is not an overbought or oversold reading. The last signal was a sell 44 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 52.01. 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 90 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 74. 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 up 12.950 at 6,436.600. Volume was 95% below average (consolidating) and Bollinger Bands were 72% narrower than normal.

Open High Low Close Volume___
6,423.6506,509.8006,401.2006,436.600 3,995

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 6,350.58 6,467.69 7,081.66
Volatility: 18 31 54
Volume: 56,542 61,533 76,509

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 9.1% below its 200-period moving average and is in an upward trend. Volatility is low 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 0 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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