Can Bitcoin USD/BTC (BTC=X) Recover
- Bitcoin price was seen holding modest gains on Wednesday, some 0.6%.
- BTC/USD price action has formed a bearish pennant pattern, subject to a break lower.
Bitcoin stays at $6,450 as the upside momentum has faded away on approach to the next important resistance at $6,700 The digital coin No. 1 is mostly unchanged since the beginning of the day and down 2.8% on daily basis.
There are about 1,500 coins issued to the market, however, Bitcoin dominance is growing again, It has reached 42% from 35% in May amid the third major correction in the history of cryptocurrencies. Some experts believe that this momentum is caused by the fact that a lot of dead tokens, issued during failed ICOs, has left the market, while investors tend to stick to large assets, such as Bitcoin, and Ethereum, during major bear cycles.
Bitcoin technical picture
From the longer-term perspective, Bitcoin dipped below $6,483, which is critical Fibo retracement level and previous 2018 low. It’s a negative signal, though the next support is seen at $6,340 strengthened by 100-SMA (4-hour chart); that’s where new buyers are likely to appear. Once it is cleared, the sell-off may be extended to the next critical support is seen at $6,000. The upside is capped by 200-DMA, currently at $6,764. Once it is broken, the recovery may be extended towards $7,000 handle.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 7,316.13.
The projected lower bound is: 5,976.56.
The projected closing price is: 6,646.34.
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 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 87.8805. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 14 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 51.41. 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 5 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 138.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 5 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 5 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -6.350 at 6,678.650. Volume was 99% below average (consolidating) and Bollinger Bands were 51% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 6,353.13 7,054.38 9,525.00
Volatility: 55 62 121
Volume: 90,368 75,788 62,604
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 29.9% 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 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 54 periods.
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