Price of Bitcoin: USD/BTC (BTC=X) has been moving in the same direction as gold since June
The correlation between bitcoin and gold has increased two times recently, writes Bloomberg. This measure over the past year is 0.496, but for the last three months it has spiralled up to 0.837. (A correlation coefficient of 1 indicates that the assets move perfectly alongside each other, whereas -1 shows the change in exact opposite directions).
Bloomberg notes that three months of trading data isn’t enough to draw ideal statistical conclusions, but yet the trend should not be ignored – investors always seek a refuge at times of turbulence. Something similar happened in 2016 when the UK announced the exit from the European Union, causing the pound to take a sharp dive. Since then economic and political uncertainty provided more evidence that bitcoin joined gold as a heaven asset.
But bitcoin is not only affected by market forces, adds Bloomberg. Tether, a stablecoin, likely plays a major role in the liquidity of crypto markets and has an impact on bitcoin. These occurrences lead to beliefs that such moves cannot be random.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 10,402.33.
The projected upper bound is: 12,784.70.
The projected lower bound is: 9,046.88.
The projected closing price is: 10,915.79.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white 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 24.5599. This is not an overbought or oversold reading. The last signal was a sell 6 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 50.27. 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 47 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 -13. This is not a topping or bottoming area. The last signal was a sell 4 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 12 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -504.750 at 10,914.500. Volume was 17% below average (neutral) and Bollinger Bands were 14% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 11,479.17 10,935.30 6,912.35
Volatility: 61 106 78
Volume: 88,927 94,014 80,934
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 57.9% above its 200-period moving average and is in an upward 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 bullish on BTC= and have had this outlook for the last 8 periods.
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