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Bitcoin: USD/BTC (BTC=X) recent tumble is being attributed to China’s recent announcement that it will crack down on crypto trading

Bitcoin: USD/BTC (BTC=X) recent tumble is being attributed to China’s recent announcement that it will crack down on crypto trading

The price of bitcoin (BTCUSD)  was last around $6,850, according to Coindesk, after slumping about 24% over the past month. In June, the leading cryprocurrency topped $9,000 for the first time in more than a year, eventually topping out above $13,000

The recent tumble is being attributed to China’s recent announcement that it will crack down on crypto trading. A statement by the People’s Bank of China on Friday warned it was increasing “supervision and control to combat virtual currency transactions.”

“Investors should be careful not to mix blockchain technology with virtual currency,” the central bank said, warning of the many risks of cryptocurrency trading.

There has also been speculation in recent months that China is preparing to launch a state-run digital currency, though the PBoC denied such a report earlier this year.

Bitcoin is not the only digital currency to suffer — Ethereum (ETHUSD)  is down 22% over the past month and Ripple (XRPUSD)  is off 25% over that span.

Still, the price of bitcoin is up 85% year to date, while Ethereum is up 8% and Ripple is down 37% in 2019.

As of Sunday night, bitcoin’s market cap was $126.3 billion, according to Coinmarketcap.com, while Ethereum was $15.5 billion and Ripple was $9.7 billion.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 8,399.59.

The projected upper bound is: 7,982.45.

The projected lower bound is: 6,315.72.

The projected closing price is: 7,149.09.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 17 white candles and 33 black candles for a net of 16 black candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 32.6932. This is not an overbought or oversold reading. The last signal was a sell 26 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 26.72. This is where it usually bottoms. 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 49 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 -122.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 17 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed up 110.920 at 7,163.900. Volume was 38% above average (neutral) and Bollinger Bands were 41% wider than normal.

Open     High      Low     Close     Volume___
7,076.7407,413.5006,441.7707,163.900 109,949
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,779.01 8,475.58 9,393.44
Volatility: 48 64 79
Volume: 75,971 78,724 86,595

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.

Summary

FOREX BTC= is currently 23.7% below its 200-period moving average and is in an downward 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 very strong flows of volume out of BTC= (bearish). Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 11 periods. Our momentum oscillator is currently indicating that BTC= is currently in an oversold condition.

HEFFXhttp://www.heffx.com
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

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