Bitcoin: USD/BTC (BTC=X) Plummets Below $11,000… Again…

Bitcoin: USD/BTC (BTC=X) Plummets Below $11,000… Again…

Bitcoin: USD/BTC (BTC=X) Plummets Below $11,000… Again…

At the time of writing, Bitcoin is trading down nearly 8% at its current price of $10,960, which is down significantly from its daily highs of $12,200 that were set yesterday.

While looking at Bitcoin’s weekly price action, it is clear that BTC is once again nearing a region of historical support that must hold, as it previously found strong buying pressure in the low-$10,000 region.

Additionally, BTC will be closing out its weekly candle today, which means that bulls must step up the buying pressure over the course of the next several hours or else the downwards pressure could continue to extend due to technical weakness.

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 9,169.79.

The projected upper bound is: 12,793.60.

The projected lower bound is: 9,626.11.

The projected closing price is: 11,209.86.

Candlesticks

A black body occurred (because prices closed lower 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 32 white candles and 18 black candles for a net of 14 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 37.5516. This is not an overbought or oversold reading. The last signal was a sell 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 58.12. 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 4 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 21. This is not a topping or bottoming area. The last signal was a sell 4 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 16 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -254.820 at 11,128.720. Volume was 55% below average (consolidating) and Bollinger Bands were 147% wider than normal.

Open High Low Close Volume___
11,178.21011,506.62010,594.25011,128.720 38,317

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

Moving Averages: 10-period     50-period     200-period
Close: 11,422.25 8,896.08 5,383.90
Volatility: 165 100 74
Volume: 94,568 92,917 78,091

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 106.7% 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 moderate flows of volume into BTC= (mildly bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 12 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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