The Bitcoin: USD/BTC (BTC=X) boom is back
The cryptocurrency has risen 46% this year, pulling back above $10,000 this week for the first time since September.
Bitcoin reached a near-term bottom in December and has been on a steady rise since then.
Bitcoin was trading at $10,100 on Thursday morning. A move to $12,000 implies 18% upside from current levels. It briefly topped that level last summer.
Mark Tepper, president of Strategic Wealth Partners, is dipping a toe into bitcoin but isn’t ready to jump all the way in.
“Overall, we’re seeing investors just continue to diversify away from traditional stocks and bonds towards alternatives. Bitcoin could fit into that alternative sleeve, but I still think it’s a little too early,” Tepper said during the same segment. “The fact that it’s becoming significantly less volatile, if you could imagine that, over the last two years is definitely helping its case.”
Tepper holds bitcoin but isn’t a believer yet. He says if it shot higher, “we’d be happy but if it goes to zero it’s not going to change our lives.”
“In my opinion, not an investment just yet still a speculative play,” said Tepper.
Bitcoin is up nearly 200% over the past 12 months.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 8,904.53.
The projected upper bound is: 10,892.45.
The projected lower bound is: 9,656.86.
The projected closing price is: 10,274.65.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 34 white candles and 16 black candles for a net of 18 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 73.7807. This is not an overbought or oversold reading. The last signal was a sell 3 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 67.56. 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 1 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 90. This is not a topping or bottoming area. The last signal was a sell 0 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 16 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 33.250 at 10,214.000. Volume was 64% below average (consolidating) and Bollinger Bands were 27% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 10,004.74 8,645.37 8,861.96
Volatility: 44 46 56
Volume: 218,804 130,733 95,199
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 15.3% 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 40 periods.
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