Bitcoin: USD/BTC (BTC=X) plummets to six month low

Bitcoin: USD/BTC (BTC=X) plummets to six month low

Bitcoin: USD/BTC (BTC=X) plummets to six month low

The price of bitcoin has fallen to a six-month low following the second major crash in the space of just three days.

The latest dip in value occurred on the 24th November, and saw bitcoin plummet to approximately £5,400.

Michael Novogratz, the CEO of Galaxy Digital, suggested that the value of bitcoin is likely to remain below $7,500 for a while, commenting: “BTC chart needs to recover $7,500 in next two days or we will be in a $6k-$7,400 range which would be less than pleasant. BTC still up 95% on the year to keep perspective, but man, I liked it better above $10k,”

Not all experts believe this decline in value to be a bad thing, however. Peter Wood, CEO of CoinBurp – the cryptocurrency trading platform said: “…new-time investors can be comforted in the fact that [bitcoin’s] value will most likely rise again, and newcomers to cryptocurrency should see no better opportunity than to invest now.”

Peter went on to suggest that bitcoin’s decline, and eventual inclince, in value is a precedent already set by the cryptocurrency: “…with any business investment or purchase, the aim is to buy low and sell high. Those who invested in Bitcoin this time last year probably purchased at the value of $3,000 to $4,000; within just seven months, this value almost quadrupled to $12,000.

“Year on year the tail end value of Bitcoin is increasingly higher, thus demonstrating gradual annual growth. Whilst nobody really knows what direction the value of any cryptocurrency will head in the near future, past trends display a possible large increase within the next 12 months at least.”

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 8,336.04.

The projected upper bound is: 7,932.93.

The projected lower bound is: 6,281.09.

The projected closing price is: 7,107.01.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 16 white candles and 34 black candles for a net of 18 black 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 40.4023. This is not an overbought or oversold reading. The last signal was a sell 27 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 27.74. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 50 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 -88. This is not a topping or bottoming area. The last signal was a buy 0 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 18 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -118.690 at 7,128.710. Volume was 2% above average (neutral) and Bollinger Bands were 41% wider than normal.

Open     High      Low     Close     Volume___
7,203.5007,384.7006,933.6807,128.710 81,657
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,655.68 8,455.55 9,398.06
Volatility: 50 64 79
Volume: 77,382 78,317 86,552

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 24.1% 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 moderate flows of volume out of BTC= (mildly bearish). Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 12 periods. Our momentum oscillator is currently indicating that BTC= is currently in an oversold condition.

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