Bitcoin: USD/BTC (BTC=X) Where to Next?

Bitcoin: USD/BTC (BTC=X) Where to Next?

Bitcoin: USD/BTC (BTC=X) Where to Next?

Bitcoin has formed lower highs and higher lows to create a symmetrical triangle on its 4-hour chart. Price is just bouncing off the bottom of the triangle and may be due for a test of the resistance at $7,200.

Bitcoin has been on weak footing over the past week but bulls don’t seem to be letting up either. The SEC temporary suspension on Bitcoin Tracker One has dashed hopes of seeing the bitcoin ETF applications approved later this month, but positive updates later on in the week managed to stem losses.

For one, it was reported that blockchain industries could add $1 trillion to global trade over the next ten years, so the focus has been on institutional interest and industry developments again. In addition, Morgan Stanley is reportedly considering offering Bitcoin swaps for its clients, also overshadowing rumors that Goldman Sachs is ditching plans to open a bitcoin trading desk. Earlier on, it was also reported that Citigroup is looking into crypto-based products for its customers.

If the spotlight stays on these kinds of updates in the week ahead, Bitcoin could see further upside. It might even break past the triangle top on any indication that the SEC might be giving the thumbs-up to the pending bitcoin ETF applications.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 6,816.87.

The projected upper bound is: 7,064.71.

The projected lower bound is: 5,866.49.

The projected closing price is: 6,465.60.

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 22 white candles and 28 black candles for a net of 6 black 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.

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 78.9190. This is not an overbought or oversold reading. The last signal was a sell 0 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 46.28. 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 39 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 -6. This is not a topping or bottoming area. The last signal was a buy 6 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 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed unchanged at 6,499.900. Volume was 54% below average (consolidating) and Bollinger Bands were 9% narrower than normal.

Open High Low Close Volume___
6,483.0406,530.2406,450.7306,499.900 42,298

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

Moving Averages: 10-period 50-period 200-period
Close: 6,389.98 6,704.29 7,584.64
Volatility: 38 56 95
Volume: 81,706 87,910 75,029

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 14.3% below 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 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 1 periods.

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