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Bitcoin: USD/BTC (BTC=X) price crashes spectacularly, losing 20 per cent of its value in minutes

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Bitcoin: USD/BTC (BTC=X) price crashes spectacularly, losing 20 per cent of its value in minutes

The price of bitcoin has plummeted dramatically, losing 20 per cent of its value in less than an hour.

The cryptocurrency crash takes bitcoin below $6,000 – its lowest value since 2019.

Several other major cryptocurrencies also experienced significant losses, with bitcoin cash losing around a third of its value.

Some cryptocurrency analysts have blamed the Covid-19 coronavirus outbreak, which has had a heavy impact on the global economy.

Previously seen as a possible safe haven in difficult times, investors now seem to be selling out to take back liquidity in case the coronavirus spreads even further. In a time of uncertainty, many investors might feel it is better to own cash or gold rather than more speculative cryptocurrencies like bitcoin.

The deadly virus, which was declared a pandemic by the World Health Organisation on Wednesday, has seen stocks endure near-continuous losses in recent weeks.

The latest drop means more than $50 billion has now been wiped from bitcoin’s overall value since the start of the month.

It is one of the most severe crashes for the notoriously volatile cryptocurrency, which traded at close to $20,000 in late 2017.

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 8,494.89.

The projected upper bound is: 6,797.39.

The projected lower bound is: 4,445.83.

The projected closing price is: 5,621.61.

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 21 white candles and 29 black candles for a net of 8 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.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 9.8042. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 6 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 18.87. 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 sell 29 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 -226.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 11 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 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -94.740 at 5,673.560. Volume was 88% below average (consolidating) and Bollinger Bands were 172% wider than normal.

Open     High      Low     Close     Volume___
5,722.4605,849.9005,541.2505,673.560 23,431
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,925.46 9,124.62 8,599.14
Volatility: 179 99 70
Volume: 339,913 262,282 130,152

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 34.0% 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 volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 21 periods. Our momentum oscillator is currently indicating that BTC= is currently in an oversold condition.

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