HEFFX Bitcoin Outlook, $2500 then a Rally
China banned initial coin offerings (ICOs), referring to them as an unauthorized fundraising tool that may involve financial scams. The Chinese central bank said those who have already raised money should pay it back.
China accounts for about 90 percent of all bitcoin trading on exchanges, and demand for the virtual currency was on the rise.
Beijing has strengthened control over bitcoin trading platforms to prevent them from becoming money laundering sites. It tried to curb capital outflow following fears of continued weakness in the domestic currency.
Bitcoin plunged on Thursday after Chinese authorities crack down on cryptocurrencies, with the country’s biggest exchange announcing the suspension of operations.
Regulators in Shanghai and the country’s financial center gave verbal instructions to exchange operators to end services. The exchanges will reportedly shut down at the end of September.
BTC China, one of the country’s top three exchanges, tweeted on Thursday it will close down operations by September 30.
NYSE Bitcoin Index closed down -263.954 at 3,505.708. Volume was -0% below average (neutral) and Bollinger Bands were 8% wider than normal.
We are looking for a $2500 bottom in here before any sort of real rally
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
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.
NYSE BitcoinIndx gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NYSE BitcoinIndx is currently 85.3% 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 very strong flows of volume into .NYXBT (bullish). Our trend forecasting oscillators are currently bearish on .NYXBT and have had this outlook for the last 0 periods.
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 1.7157. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 40.14. 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 7 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 -231.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 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 7 period(s) ago.
During the past 10 bars, there have been 1 white candles and 0 black candles for a net of 1 white candles. During the past 50 bars, there have been 1 white candles and 1 black candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 23 falling windows in the last 50 candles–this makes the current falling window even more bearish.
A gravestone doji occurred. This often signifies a top (the longer the upper shadow, the more bearish the signal).