Bitcoin: USD/BTC (BTC=X) Support At $3,700

Bitcoin: USD/BTC (BTC=X) Support At $3,700

Bitcoin: USD/BTC (BTC=X) Support At $3,700

At spot prices, BTC is back to green and up three percent from last week’s close but stable below $4000 in the last day. Of note though is the rejection of lower lows below our sell trigger line and main support at $3,700.

Because of the long lower wick and the absence of sell pressure as there is no upper wick as the week started with a bang as prices dropped from $4,300, we expect BTC to find support and even expand above $4,000 towards $4,500—700 resistance level.

From our last BTC/USD trade plans, it would be ideal if prices thrust above the upper limit of this trade range at $4,500 at the back of high volumes. Then conservative traders can begin loading up on dips with first targets at $5,000, $5,500 and later $6,000 with stops at the lows of the breakout bar.

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 5,188.84.

The projected upper bound is: 4,369.76.

The projected lower bound is: 3,190.25.

The projected closing price is: 3,780.01.

Candlesticks

A black body occurred (because prices closed lower 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 28 black candles for a net of 6 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 21.2288. This is not an overbought or oversold reading. The last signal was a buy 8 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 30.50. 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 4 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 -58. This is not a topping or bottoming area. 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 buy 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -65.930 at 3,832.300. Volume was 70% below average (consolidating) and Bollinger Bands were 92% wider than normal.

Open High Low Close Volume___
3,896.6104,000.2003,815.9103,832.300 21,442

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 3,965.67 5,516.00 6,498.03
Volatility: 96 78 63
Volume: 96,054 70,359 79,838

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 41.0% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 22 periods.

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