Bitcoin: USD/BTC (BTC=X) price remained in a bearish zone
Recently, bitcoin price started a major decline below $8,000 against the US Dollar. The BTC/USD pair declined heavily and broke the $7,800 and $7,600 support levels. The pair even broke the $7,800 level and the 100 hourly simple moving average. Finally, there was a break below the $7,550 level and the price tested the key $7,500 support area. A swing low was formed at $7,502 and the price is currently correcting higher.
It is currently testing the $7,700 resistance area and the 23.6% Fib retracement level of the last drop from the $8,131 high to $7,502 low. If there is an upside correction, the price could test the $7,800 resistance area. There is also a key bearish trend line forming with resistance near $7,820 on the hourly chart of the BTC/USD pair. The pair is clearly facing an uphill task near $7,800, $7,850, and the 100 hourly SMA. The next key resistance is near the $8,000 level. Moreover, the 50% Fib retracement level of the last drop from the $8,131 high to $7,502 low is near the $7,850 to act as a resistance.
Therefore, a successful break above the trend line and $7,850 could push the price towards the $8,000 barrier. If there is an upside break above $8,000, the price could move back in a positive zone. Conversely, if there is a downside break below $7,600, the price could retest the $7,500 support area.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 8,648.88.
The projected lower bound is: 6,900.62.
The projected closing price is: 7,774.75.
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 32 white candles and 18 black candles for a net of 14 white 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 40.0350. This is not an overbought or oversold reading. The last signal was a buy 3 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 49.27. 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 11 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 -85. This is not a topping or bottoming area. 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 sell 11 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 13.020 at 7,725.140. Volume was 52% below average (consolidating) and Bollinger Bands were 4% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,997.37 7,044.24 4,716.33
Volatility: 69 76 72
Volume: 80,278 83,552 79,022
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 63.8% above its 200-period moving average and is in an downward 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 bearish on BTC= and have had this outlook for the last 3 periods.