Bitcoin: USD/BTC (BTC=X) reaching their loftiest value since mid-November
Bitcoin prices rallied today, reaching their loftiest value since mid-November as the broader market pushed higher.
The digital currency climbed to $8,848.92 at roughly 1:15 p.m. EST, according to CoinDesk data.
At this point, the cryptocurrency was up 3.6% for the day, and was trading at its highest level since November 12th, additional CoinDesk figures reveal.
The digital asset has been following a broad, upward trend for the last several days, pushing higher after reaching a 2020 low of $6852.09 on January 3rd.
Going forward, market observers might benefit from watching a handful of key price levels, noted analysts.
“Persistent buying momentum (at the moment, it looks like RSI will push towards 80) has allowed bitcoin to retest/break key resistance of $8442 and is currently completing a Kumo breakout,” said Brookins.
“If that holds, it would confirm a resumption of the bull trend,” he stated.
However, Brookins added that “in classic crypto form, bitcoin is trying to regain all of its Q4 loses in 2 weeks.”
“So, it’s overbought right now, but I wouldn’t stand in front of the train for a reversal just yet.”
“As long as $8442 (now support) holds after RSI decompresses, the bulls are in control again,” stated Brookins.
Ramak J. Sedigh, founder & CEO of Plouton Mining, also weighed in.
“A quick look at the trading volume shows a huge increase parallel to the price increases,” he stated.
“So unless we break out of the 8800 and 9000 resistance levels this is just another price manipulation – intentional or not. So it’s bound to come back to re-test the lows.”
For now, bitcoin’s recent price rally “looks too much too quickly,” he stated.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 7,944.71.
The projected upper bound is: 9,388.05.
The projected lower bound is: 8,245.73.
The projected closing price is: 8,816.89.
A white body occurred (because prices closed higher than they opened).
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 29 white candles and 21 black candles for a net of 8 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.
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 85.7146. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 74.95. 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 28 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 155.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 buy 27 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 73.900 at 8,783.400. Volume was 80% below average (consolidating) and Bollinger Bands were 36% 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: 8,122.70 7,444.04 9,077.42
Volatility: 53 49 65
Volume: 103,760 92,377 86,244
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 3.2% below its 200-period moving average and is in an upward 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 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 10 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.