Bitcoin: USD/BTC (BTC=X) technical indicators are pointing to further pain ahead
As Bitcoin’s recent sell-off accelerates, some technical indicators are pointing to further pain ahead.
The largest cryptocurrency’s slide snowballed on Monday, with the price dropping as much as 5% to test the key $8,000 level, which it hasn’t breached since the end of October. Bitcoin also bounced off its 200-day moving average line — a drop below it could trigger a sell signal.
The digital currency slumped after China took steps to crack down on the space. While the Asian nation said it may start to embrace the blockchain technology that supports cryptocurrencies, it has since taken fresh steps to curb trading. Watchdogs in Shanghai in recent days issued notices calling for a cleanup of companies involved in trading of digital assets, while one in Beijing warned against illegal exchange operations. In addition, the official accounts of exchange operator Binance and blockchain platform Tron were suspended by Weibo last week.
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 8,791.24.
The projected upper bound is: 8,876.35.
The projected lower bound is: 7,285.12.
The projected closing price is: 8,080.73.
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 17 white candles and 33 black candles for a net of 16 black candles.
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 26.1157. This is not an overbought or oversold reading. The last signal was a sell 22 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 35.84. 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 45 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 -125.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 13 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -47.450 at 8,084.250. Volume was 84% below average (consolidating) and Bollinger Bands were 11% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 8,417.24 8,557.61 9,369.79
Volatility: 29 61 78
Volume: 62,069 77,112 85,639
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 13.7% below its 200-period moving average and is in an downward 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 moderate flows of volume out of BTC= (mildly bearish). Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 7 periods.