Bitcoin: USD/BTC (BTC=X) Volume Spikes, But Price Remains Unfazed
At the time of writing, Bitcoin is trading down nominally at its current price of $3,620. Ever since BTC made its large price swing last Friday, it has been trading sideways around its current price levels.
Earlier today, BTC experienced a massive and unusual trading volume spike that sent its 24-hour trading volume from just over $6 billion to nearly $14 billion, before quickly dropping back to $6 billion. The aggregated crypto markets also saw a volume spike, temporarily jumping from $20 billion to $36 billion.
Mati Greenspan, the senior market analyst at eToro, spoke about this volume spike in a recent email, noting that the volume spike across the aggregated markets is interesting considering that there was no price movement attached to it.
“In technical analysis, when a strong move is accompanied by strong volumes it usually means that there’s more strength to the movement. Such was the case as well during the declines in November… Seeing the 24-hour volumes reach $36 billion this morning, on a day with very little price movement is indeed intriguing. Remember, this is an entirely new market that has only surpassed the $1 billion mark for the very first time in March 2017. This industry has basically grown from nothing into a global market place in just a few short years,” Greenspan noted.
It is currently unclear as to what or who may have caused this volume spike, but what is important to traders is that BTC’s price remained completely unfazed, and most major cryptocurrencies only moved marginally.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 3,888.29.
The projected lower bound is: 3,257.07.
The projected closing price is: 3,572.68.
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 24 white candles and 26 black candles for a net of 2 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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.
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 18.2871. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 7 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 51.03. 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 60 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 44. This is not a topping or bottoming area. 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 10 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 1.450 at 3,572.950. Volume was 70% below average (consolidating) and Bollinger Bands were 67% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,561.94 3,631.00 5,258.55
Volatility: 54 54 65
Volume: 67,934 69,653 78,457
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 32.1% below its 200-period moving average and is in an upward trend. Volatility is 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 4 periods.
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