The Bitcoin Report

The Bitcoin Report

The Bitcoin Report

Bitcoin has bounced and the sentiment has swung back, BTC is now hovering around $12000.

This is in line with what we expected and it looks certain BTC will see $20,000 again.

What Happened Yesterday

The mini cash was sparked by 3 things, BitConnect’s collapse, associated parties dumping and speculators hammering BTC believing the BitConnect incident was a major event, in fact it was just a blip, serous players knew BitConnect was a scam from day 1 and avoided the bogus lending site.

The China Syndrome

On Tuesday, an official from the People’s Bank of China said the country’s centralized virtual currency trade needs to end, Reuters reported, the individual making the claim was not a person with authority to make any laws, he was just another attention seeking politician making noise.

Intercontinental Exchange (ICE) said on Thursday that, together with startup Blockstream, it is launching a service to send data on cryptocurrency exchanges to Wall Street traders.

This may be a sign that more institutional investors are considering digital money as a serious investment. The service would collect information from more than 15 cryptocurrency exchanges around the world and deliver it to traders.

Got questions on Bitcoin, Ethereum, Ripple or BitConnect? G-BiTX has the answers, the company has launched a channel on Telegram to help people navigate the world of CryptoCurrencies.

Join the Channel Now, Click Here

At the close yesterday it looked like this, negative sentiment and a falling chart.

NYSE BitcoinIndx closed down yesterday -2,503.212 at 9,517.060. Volume was -0% below average (neutral) and Bollinger Bands were 22% wider than normal.

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 13,680.45 12,606.64 5,642.27
Volatility: 174 184 129
Volume: 0 0 0

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

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 68.7% above its 200-period moving average and is in an downward 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 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 9 periods.

Momentum

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 5.5327. 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 34.43. 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 19 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 -291.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 11 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 sell 19 period(s) ago.

Candlesticks

During the past 10 bars, there have been 0 white candles and 0 black candles. During the past 50 bars, there have been 0 white candles and 0 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 21 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).

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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