Bitcoin: USD/BTC (BTC=X) raised the odds of a rally to the psychological hurdle of $4,000
With bitcoin’s (BTC) quick reversal of the losses seen on Monday, the technical charts are again pointing to a rally to $4,000.
The leading cryptocurrency by market capitalization jumped to a high of $3,877 yesterday, before seeing a UTC close at $3,844, according to Bitstamp data. The 3.9 percent gain engulfed the 2.4 percent drop registered on Monday.
The bounce from the 5-week moving average (MA) support at $3,703 has reinforced the bullish view put forward by the ascending indicator. The average is also bullishly holding above the 10-week MA for the first time since August 2008, as discussed yesterday.
Further, BTC’s persistent defense of the 100-day MA line, seen below $3,700, in the last nine days has weakened the high-volume bearish outside reversal witnessed on Feb. 24.
So, the doors look open for BTC to revisit $4,000 – more so, as the hourly chart is showing a bullish continuation pattern. As of writing, BTC is trading at $3,840, representing a 3 percent gain on a 24-hour basis.
Overall, the bias in prices is: Sideways.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 3,856.90.
The projected upper bound is: 4,168.78.
The projected lower bound is: 3,585.43.
The projected closing price is: 3,877.10.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 79.7632. This is not an overbought or oversold reading. The last signal was a buy 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 53.91. 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 23. This is not a topping or bottoming area. The last signal was a buy 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 sell 8 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -73.380 at 3,871.720. Volume was 88% below average (consolidating) and Bollinger Bands were 35% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,842.12 3,653.75 4,974.47
Volatility: 52 50 65
Volume: 53,332 67,983 75,709
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 22.2% below its 200-period moving average and is in an upward trend. Volatility is 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 24 periods.