Bitcoin: USD/BTC (BTC=X) Plummets 23% From Daily Highs

Bitcoin: USD/BTC (BTC=X) Plummets 23% From Daily Highs

Bitcoin: USD/BTC (BTC=X) Plummets 23% From Daily Highs

After incurring a massive influx of buying pressure that sent Bitcoin (BTC) to nearly $14,000 yesterday, the cryptocurrency has plummeted lower and is now struggling to find support in the upper-$10,000 region.

This massive volatility has led many investors to question whether or not $13,800 was a long-term top for BTC, but analysts are now noting that this could be the perfect time to increase exposure to the cryptocurrency, as it may continue its journey upwards in the near future.

Bitcoin Drops Into $10,000 Region as Selling Pressure Ramps Up

At the time of writing, Bitcoin is trading down nearly 20% at its current price of $10,715, down significantly from its recent highs of just below $14,000.

While zooming out and looking at Bitcoin’s short-term price action, it is clear that the cryptocurrency is still in a firm uptrend despite today’s drop, as it is up significantly from its one-month lows of $7,500.

While keeping this in mind, today’s drop seems rather insignificant, but it does certainly signal that the cryptocurrency is not ready to journey back up to its previously established all-time-highs, and further consolidation may be necessary before it once again breaks into the $20,000 region.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 8,998.27.

The projected upper bound is: 12,841.44.

The projected lower bound is: 9,961.25.

The projected closing price is: 11,401.34.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 34 white candles and 16 black candles for a net of 18 white candles.

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 37.9969. This is not an overbought or oversold reading. The last signal was a sell 2 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 63.37. 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 sell 1 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 56. 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 13 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed up 628.240 at 11,297.000. Volume was 80% below average (consolidating) and Bollinger Bands were 170% wider than normal.

Open High Low Close Volume___
10,681.00011,547.00010,418.68011,297.000 17,156

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

Moving Averages: 10-period     50-period     200-period
Close: 10,728.16 8,590.19 5,256.23
Volatility: 141 95 72
Volume: 84,858 91,467 77,739

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 114.9% above 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 very strong flows of volume into BTC= (bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 9 periods.

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