Bitcoin: USD/BTC (BTC=X) soars past the $US9,000 level
Bitcoin tore through the $US9,000-per-coin level on Tuesday to hit its highest point since early November.
The coin jumped as high as $US9,176.28 in Tuesday trading, trading up alongside other cryptocurrencies. Bloomberg’s Galaxy Crypto Index jumped as much as 1.7% to its loftiest level in more than two months.
The world’s biggest cryptocurrency has taken on the role of an unconventional safe-haven investment as coronavirus fears drag on traditional risk assets. US stocks on Monday dropped the most since October as the virus continued to spread around the world.
Major indexes traded higher Tuesday but sit below the record highs they enjoyed on January 17.
Popular safe-haven assets including US Treasury bonds, the Japanese yen, and gold have also rallied in the wake of the spreading Wuhan virus. The precious metal reached its highest point since 2013 on Monday as investors fled stocks and other plummeting assets.
Bitcoin’s Tuesday surge follows last week’s slump as traders worried Lunar New Year celebrations in China would hit demand for the digital coin, Bloomberg first reported. Arthur Hayes, co-founder and CEO of the BitMex cryptocurrency exchange, correctly predicted the holiday would hit the coin’s price.
“The year of the rat starts this weekend. Time for #Bitcoin volatility and volumes to nosedive,” he wrote in a January 22 tweet.
Renowned for its volatility, bitcoin nearly doubled to $US7,193.60 from $US3,732.22 last year. The coin’s price at the end of 2019 still marked a roughly 50% drop from when it neared $US14,000 in late June.
Overall, the bias in prices is: Upwards.
Short term: Prices are moving.
Intermediate term: Prices are trending.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 8,183.71.
The projected upper bound is: 9,699.92.
The projected lower bound is: 8,501.16.
The projected closing price is: 9,100.54.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 84.6926. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 66.24. 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 9 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 149.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 119.160 at 9,066.210. Volume was 41% above average (neutral) and Bollinger Bands were 12% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,647.53 7,769.21 8,897.00
Volatility: 47 50 61
Volume: 104,433 97,975 87,310
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 1.9% above 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 23 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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