Bitcoin: USD/BTC (BTC=X) prices enjoyed a notable bounce today
Bitcoin prices enjoyed a notable bounce today, approaching $8,500 as they followed their recent bullish trend.
The cryptocurrency rose to an intra-day high of $8,476.79 at roughly 8:45 p.m. EST, CoinDesk data shows.
At this point, the digital asset had appreciated roughly 4.6% from its price of $8,104.02 when the rally began around 7 p.m. EST, additional CoinDesk figures reveal.
Bitcoin then pulled back somewhat, trading close to $8,400 at the time of this writing, but had still held on to most of the gains it experienced tonight.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
When explaining this run up, several market observers pointed to technical analysis.
“We think this is a continuation of the recent uptrend and a breakout of the short-term consolidation in a symmetrical triangle formation,” said Tim Enneking, managing director of Digital Capital Management.
Further, “several platforms launched options contract trading for the first time on bitcoin today,” he noted, a development he interpreted as bullish for bitcoin prices.
“In the after hours markets occurring right now, spot traders are continuing to drive prices higher possibly in expectation of an increase in derivative buying activity throughout the week.”
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 9,086.09.
The projected lower bound is: 7,992.57.
The projected closing price is: 8,539.33.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 28 white candles and 22 black candles for a net of 6 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 76.9681. This is not an overbought or oversold reading. The last signal was a sell 5 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 71.68. This is where it usually tops. 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 buy 27 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 114.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 26 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 386.490 at 8,514.000. Volume was 49% below average (neutral) and Bollinger Bands were 16% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,967.77 7,406.63 9,093.36
Volatility: 46 48 64
Volume: 103,305 91,984 86,273
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 6.4% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into BTC= (mildly bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 9 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.