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The World Descends into Chaos, And Bitcoin: USD/BTC (BTC=X) is on the Rise

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The World Descends into Chaos, And Bitcoin: USD/BTC (BTC=X) is on the Rise

Why Bitcoin is Continuing to Climb, from More Solid Ground Than Ever

Last night saw Bitcoin once again soaring up the market, with a 6% increase over the course of three hours. This continues a fantastic start to the year for the world’s largest decentralized currency, which is up 30% since January 1st, and  pulling along with it several other primary cryptocurrencies, including Ether, Litecoin, Ripple and Dash.

A Significant Moment for Bitcoin

January 2020 is certainly proving highly significant for Bitcoin. The sharp increases and painful falls of the past pale into comparison with now, as the current increase seems to come from a far better established position with much more stability. Furthermore, the activity around Bitcoin is expanding in exchanges, banks and other financial institutions, together with its legitimacy and relevancy.

Crisis as a Catalyst

Things happen so fast in today’s world that it’s hard to remember that the geopolitical turmoil between the United States and Iran was only three weeks ago. These led to plummeting world exchanges, and a flood of investors running to safe havens, such as Bitcoin whose price jumped sharply in early January – initiating the strong trend for the month. The latest potential crisis is the coronavirus, which is causing the spread of red screens in stock exchanges all over the world, as the number of victims increases. The concern regarding a global epidemic grows – a situation which is seriously hurting China, but more importantly, an effect that far transcends its borders.

Technical Indicators

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 8,290.99.

The projected upper bound is: 10,074.12.

The projected lower bound is: 8,847.10.

The projected closing price is: 9,460.61.

Candlesticks

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 32 white candles and 18 black candles for a net of 14 white candles.

Momentum Indicators

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 93.0341. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 12 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 68.61. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 146.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 12 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 2 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -128.840 at 9,416.180. Volume was 73% below average (consolidating) and Bollinger Bands were 1% narrower than normal.

Open     High      Low     Close     Volume___
9,545.1409,563.2509,267.6409,416.180 24,406
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 8,865.70 7,902.00 8,876.44
Volatility: 50 50 60
Volume: 101,769 98,802 87,267

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

FOREX BTC= is currently 6.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into BTC= (mildly bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 26 periods.

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