KXCO Bitcoin Trading Outlook
As the market matured over the past few months, bitcoin’s price has bounced around $20,000 in a sign that volatility in the market has settled.
Cryptocurrencies have suffered a brutal comedown this year, losing $2 trillion in value since the height of the 2021 rally. Bitcoin, the world’s biggest digital coin, is off around 70% from its November high.
As the retail market dried up institutions moved in, Bitcoin is now on the table of American Board Rooms and demand around the $20000 mark has remained constant.
KXCO remains BULLISH on Bitcoin long-term.
Bollinger Bands
Bollinger Bands are 47.53% narrower than normal. The narrow width of the bands suggests low volatility as compared to Bitcoin’s normal range. Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. The bands have been in this narrow range for 63 period(s). The probability of a significant price move increases the longer the bands remain in this narrow range.
The recent price action around the bands compared to the action of the Relative Strength Index (RSI) does not suggest any trading opportunities at this time.
Candlesticks
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
#Bitcoin is now less volatile than S&P 500 and Nasdaq. pic.twitter.com/7x2zaTmgKM
— Michael Saylor⚡️ (@saylor) November 6, 2022
Momentum Mixed
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 76.8467. 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 58.33. 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 61 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 73. This is not a topping or bottoming area. The last signal was a sell 0 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 21 period(s) ago.
Summary of what's hot in the #cryptonews world last week? 👀
— CoinMarketCap (@CoinMarketCap) November 6, 2022
🔸Musk’s Twitter Shenanigans sent #Dogecoin soaring
🔸Meta allows #NFTs to be created on Instagram
🔸MicroStrategy took a $727,000 impairment charge on its Bitcoin investment in the third quarter of 2022
Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
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.
Summary
Bitcoin is currently 12.6% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of Bitcoin at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on Bitcoin and have had this outlook for the last 18 periods.
