Bitcoin: USD/BTC (BTC=X) Price Drops Just as Gold Bull Breakout Begins
Bitcoin price in recent days has started a long-overdue correction following a powerful multi-month, parabolic rally that took the price of the crypto asset from a trading range between $3,000 and $4,000, to local highs of over $9,000.
But as the cryptocurrency dubbed as digital gold’s bullish momentum begins to fade, the price of Gold has begun to climb closer to reaching multi-year highs in the face of mounting fears over an impending global economic storm on the horizon.
Bitcoin Price Drops Just as Gold Bull Breakout Begins
In recent weeks, Gold’s reign as the preferred hedge asset during economic downswings was given its first real run for its money. As concerns grow surrounding the continued trade war between the USA and China, and the effect the two superpowers might have on the greater global economy.
As investors in the stock market and other traditional markets seek to de-risk and protect capital from the potential crash many financial analysts are predicting, safe-haven assets such as Gold are typically increasingly held as a hedge.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 8,782.42.
The projected lower bound is: 7,045.35.
The projected closing price is: 7,913.88.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 33 white candles and 17 black candles for a net of 16 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 22.3318. This is not an overbought or oversold reading. The last signal was a sell 7 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 51.76. 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 7 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 -104.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 sell 7 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 129.980 at 7,860.960. Volume was 67% below average (consolidating) and Bollinger Bands were 10% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,326.94 6,846.55 4,651.22
Volatility: 68 75 76
Volume: 82,607 82,024 79,380
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 69.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 34 periods.