Bitcoin: USD/BTC (BTC=X) price consolidates below $5000
The bitcoin price on Thursday depreciated as much as 10.33-percent against the US dollar.
The cryptocurrency reached an intraday low at $4,833 in an interim bearish correction. It was already trending inside an overbought zone when the downside action started. Traders found a decent opportunity to exit their long positions around bitcoin’s fresh yearly high at $5,342, prompting a sharp pullback towards $4,789, the higher-low from yesterday. The price didn’t extend the correction and started consolidating within a new trading range instead.
An extended bearish correction could see bitcoin testing $4,738 – the 50% level of the Fibonacci retracement chart of the recent wave from 4134-low to 5342-high – as its next potential support. Nevertheless, it is the 78.6% level of the same wave that appears to be positioned ideally. The 4393-support was a critical resistance level from the November 29 trading session last year. Traders could consider it while opening new long orders.
We expect the bitcoin price to maintain its interim bullish bias as long as it stays above the ascending blue trendline. A break below it will push the price into a support zone, which was previously a critical resistance area. Bitcoin will resume its long-term downtrend only when it breaks below the green bar. Until then, it would keep its bullish momentum alive.
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 4,089.20.
The projected upper bound is: 5,471.84.
The projected lower bound is: 4,500.66.
The projected closing price is: 4,986.25.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
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 77.4151. This is not an overbought or oversold reading. The last signal was a sell 1 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 67.90. 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 119.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 15 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 5 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 63.810 at 4,958.510. Volume was 51% below average (consolidating) and Bollinger Bands were 207% 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: 4,446.77 4,004.42 4,607.92
Volatility: 113 71 69
Volume: 76,147 66,885 73,280
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 7.6% 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 6 periods.
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