Bitcoin: USD/BTC (BTC=X) The Unstoppable Force

Bitcoin: USD/BTC (BTC=X) The Unstoppable Force

Bitcoin: USD/BTC (BTC=X) The Unstoppable Force

Bitcoin and crypto are finally entering the mainstream political discourse. The launch of Facebook’s Libra lit somewhat a fire under the rear of politicians the world over, mandating them, along with other economic and social commentators, to address the issues that the Silicon Valley-backed cryptocurrency could bring.

Anti-Crypto Stance

If you have perused financial news or industry headlines over recent weeks, you would know of the anti-crypto stance that some of the world’s most powerful people have struck.

American President Donald Trump, for instance, explained that he believes that cryptocurrencies have no inherent value, calling these nascent markets “thin air”. He went on to touch on the volatility of assets like Bitcoin, along with the fact that they can be used to facilitate illicit activities like money laundering, tax evasion, and terrorist financing.

U.S. Treasury Secretary Steven Mnuchin echoed Trump’s concerns in his own comment. Mnuchin, who claimed that he doesn’t believe that USD isn’t an asset for criminals, remarked that cryptocurrencies should be subject to more stringent regulations to deter illicit activity.

While many Congressmen and Senators followed suit, repeating those concerns in hearings on the matter of digital assets, a select few have started to come out in support of Bitcoin.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 11,930.26.

The projected lower bound is: 8,227.39.

The projected closing price is: 10,078.83.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white 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.

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 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 70.1499. This is not an overbought or oversold reading. The last signal was a buy 18 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 48.25. 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 35 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 9. This is not a topping or bottoming area. The last signal was a buy 2 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 sell 31 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed up 11.740 at 10,040.420. Volume was 91% below average (consolidating) and Bollinger Bands were 30% narrower than normal.

Open     High      Low     Close     Volume___
10,028.25010,084.6009,952.80010,040.420 7,814

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

Moving Averages: 10-period     50-period     200-period
Close: 9,759.02 10,490.40 6,445.36
Volatility: 50 106 77
Volume: 75,653 91,764 79,469

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 55.8% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. 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 16 periods.

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