Bitcoin: USD/BTC (BTC=X) Strong Resistance Exists Around $5,800
Despite being caught in a bout of sideways trading yesterday, Bitcoin has been able to maintain its upwards momentum and has now surged above the $5,600 level. This upwards momentum has so far been relatively isolated to BTC, as most other cryptocurrencies have not yet surged.
Although Bitcoin may be in the process of gearing up for a big move to $6,000, one prominent analyst believes that BTC’s strongest level of resistance exists between $5,800 and $6,000, which may prove to be an arduous task for the cryptocurrency to break above.
Bitcoin (BTC) Rapidly Surges to $5,600
At the time of writing, Bitcoin is trading up nearly 5% at its current price of just above $5,600 and is up from its daily lows of just above $5,300.
Today’s upwards surge marks a continuation of the upwards momentum Bitcoin first built earlier this month when BTC surged from the low-$4,000 region to highs of $5,400 – where the crypto found a significant amount of selling pressure that pushed it back down to roughly $5,000.
Since then, Bitcoin has been tepidly advancing higher, and is now nearing its next key battle zone that exists between $5,800 and $6,000, which may act as a strong level of resistance.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 6,136.89.
The projected lower bound is: 5,198.97.
The projected closing price is: 5,667.93.
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 31 white candles and 19 black candles for a net of 12 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 88.3182. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 3 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 72.27. 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 sell 13 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 172.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 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 24.000 at 5,634.000. Volume was 60% below average (consolidating) and Bollinger Bands were 5% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 5,317.82 4,540.09 4,482.48
Volatility: 35 65 69
Volume: 66,106 70,769 73,712
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 25.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 25 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.
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