Bitcoin: USD/BTC (BTC=X) President Xi Jinping supports blockchain in China
The crypto markets boomed this week, exhibiting their trademark volatility once again. In meteoric fashion, the bitcoin price jumped from a 5-month low of around $7,300 to a monthly high well above $10,000. Much of the cryptocurrency market followed, with ethereum posting a similarly impressive 24% gain. This was further reflected by a boost of more than $50 billion to the entire cryptocurrency market cap from Wednesday to Sunday.
Since then, things have remained relatively calm. Bitcoin retreated below $10,000, and the broader market has mostly ebbed lower. One cryptocurrency, however, is determined to keep going. NEO, refusing to give in to any correlation to bitcoin, has managed to outshine the vast majority of the market. Today, the so-called ‘Chinese Ethereum’ has added 35% to its total value.
Without a doubt, Chinese President Xi Jinping’s vow to ‘seize the opportunity’ of blockchain technology has much to do with the renewed sentiment within the crypto market. On Thursday, during an address to the Political Bureau of the Central Committee, Xi praised bitcoin’s underlying technology, if not the decentralized cryptocurrency itself: ‘[We must] clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation.’
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 10,532.02.
The projected lower bound is: 8,649.94.
The projected closing price is: 9,590.98.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 18 white candles and 32 black candles for a net of 14 black 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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 84.1612. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 17 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 65.72. 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 21 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 178.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 period(s) ago.
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 down -17.580 at 9,606.080. Volume was 51% below average (consolidating) and Bollinger Bands were 5% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,427.99 8,851.47 8,945.91
Volatility: 108 70 79
Volume: 74,214 79,843 85,110
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.
FOREX BTC= is currently 7.4% 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 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 3 periods.