Bitcoin: USD/BTC (BTC=X) Signs of a Bearish Flag
Bitcoin bulls and bears continue to battle it out as the price is hovering above the key support area once more. Bulls have strongly defended this level twice already, but the formation of lower highs has indicated that selling pressure is getting stronger.
A break below this support might even spur a slide that’s the same height as the earlier range, which spans roughly $2,000. On the other hand, a break above the short-term consolidation pattern could put bitcoin back on track towards testing the $8,000 mark again.
Keep in mind, however, that sentiment hasn’t favored Bitcoin and its peers to start the week as the SEC suspension on a couple of crypto-backed securities has filled headlines. Although there have been positive developments in the industry, the early selloff appears to have dampened sentiment and expectations that the bitcoin ETF applications could be approved.
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 6,890.03.
The projected upper bound is: 6,942.91.
The projected lower bound is: 5,666.23.
The projected closing price is: 6,304.57.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 27 black candles for a net of 5 black 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 27.4051. This is not an overbought or oversold reading. The last signal was a buy 0 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 40.91. 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 buy 33 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 -82. This is not a topping or bottoming area. The last signal was a buy 0 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 5 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 30.760 at 6,331.950. Volume was 61% below average (consolidating) and Bollinger Bands were 14% 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: 6,692.08 6,912.51 7,698.27
Volatility: 63 59 97
Volume: 79,837 88,937 74,139
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 17.7% 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 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 11 periods.
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