Bitcoin: USD/BTC (BTC=X) May Soon See Increased Selling Pressure

Bitcoin: USD/BTC (BTC=X) May Soon See Increased Selling Pressure

Bitcoin: USD/BTC (BTC=X) May Soon See Increased Selling Pressure

At the time of writing, Bitcoin (BTC) is trading down 0.5% at its current price of $3,630. In the time following last Friday’s price rally, BTC has been relatively stable, and has found some levels of buying support in the low-$3,600 region.

Although its ability to maintain its recent gains is certainly positive, Tim Kelly, the founder and CEO of digital asset advisory firm BitOoda, recently told MarketWatch that he expects a final wave of selling pressure to push BTC into the mid-to-high $2,000 range, which could then spark a short-covering rally.

“We expect the final wave of desperation to take us to the mid-to-high $2000’s before the market starts the recovery. We could be wrong, of course, and until the 2018 low is taken out (it has not been revisited yet), there is a possibility that the selloff is done,” Kelly explained, further adding that a short-covering “could easily take BTC to $4030-$4300 cluster of previous highs or even to $5600-$6000 support level that has become resistance.”

Analysts Concur That Bitcoin is Bearish in the Short-Term

Although Kelly is offering traders a more long-term view of where he sees Bitcoin heading, multiple analysts have shared their thoughts on Bitcoin’s near-term price action and seem to concur that BTC will see further losses before climbing higher.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3,915.85.

The projected lower bound is: 3,253.60.

The projected closing price is: 3,584.73.

Candlestick

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black 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 56.1807. This is not an overbought or oversold reading. The last signal was a buy 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 52.03. 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 58 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 75. This is not a topping or bottoming area. The last signal was a sell 1 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 8 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed up 14.080 at 3,591.380. Volume was 68% below average (consolidating) and Bollinger Bands were 68% narrower than normal.

Open High Low Close Volume___
3,573.8103,732.2003,563.7203,591.380 26,811

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

Moving Averages: 10-period 50-period 200-period
Close: 3,533.27 3,635.72 5,304.75
Volatility: 54 57 65
Volume: 66,972 70,785 78,721

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 32.3% below its 200-period moving average and is in an upward 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 bullish on BTC= and have had this outlook for the last 2 periods.

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